Chinese Securities Financing Business Development Countermeasures

Our country’s securities market established in1990,and after20years ofdevelopment have already had a certain scale and competitive, but the Chinese stockmarket trading is still in a single pattern and short of legal channels of financing, thenthese problems in a certain extent expanded risk of securities trading, and damagedthe legitimate interests of investors. In2010, our country’s securities market startedthe pilot operation of securities financing business, to a certain extent this is effectiveto solve the above problems. The launched of the margin financing business pilot isone of the most important measures of Chinese capital market reform anddevelopment, and inject new vitality into our country securities market, and it’s havepositive significance to perfect our country securities market trading system andpromote Chinese securities market stable development and innovation.It has been more than2years since our country securities market marginbusiness was officially started, during that time margin business pilot operation hasobtained some achievements, but also showed some problems needed to resolve.Since the pilot operation, the CSRC in pushing margin pilot business intoconventional supervision of formal stage, but also in the perfect and improve marginbusiness trading system, in order to adapt to the needs of the development of thebusiness, including refinancing the practice of business, increasing the number ofmargin securities companies, expanding the underlying securities of margin business.These measures on certain level played a role in promoting the smooth operation ofour country securities market margin business. But with the routinizationdevelopment of Chinese margin business, more securities firms will join the ranks ofmargin business, and the margin business regulatory requirements and trading systemrequirements will continue to increase, it needs the existing business modes can makefurther improve in combination with the actual operation of the securities market.Refinancing mechanism was introduced into securities financing system inOctober2011, and after contrasting our country margin trading mode with the world main stock markets margin trading model, it can be found that Chinese marginbusiness model is relatively similar with the Japanese model. So the article aims tolearn from Japan’s more mature margin business operation mode and combineChinese securities market situation to find some Chinese margin businessdevelopment countermeasures, and try to play a role in promoting Chinese marginbusiness development and growth, as well as the further development of the Chinesesecurities market. This article first sorting the margin related theory, expounds themargin trading definition, characteristics, basic types, main function and special risk; then make a detailed analysis of the Chinese securities financing business operationstatus, including Chinese margin business development course, current situation, theexistence question and the reason analysis; In-depth analysis Japan margin businessmodel; Finally learn from Japan’s margin trading mechanism and combine withChinese securities market situation to find some margin business development systemconsummation countermeasure.