Research On Stock Pledge Repurchase Business Of AVIC Securities Co.,LTD.

Since 2011 when Shanghai Stock Exchange launched the agreed to buy back securities trading,the equity financing business of securities companies has become an increasingly important financing tool for investors,especially for those institutional investor who hold a large stake.Draw on the characteristics of the agreed to buy back securities trading and bank,trust the OTC stock pledged repo,Shanghai and Shenzhen stock markets launched a securities company shares pledged repo business in 2013,the business breaks through the constraints of agreed to buy back securities trading in the capital source,scope of underlying securities,trading deadline,and make up for the OTC pledge in the problem of disposal of default,timeliness,etc,to meet the financing needs of customers through floor trading.Since the business was launched,participant increased rapidly,stock customer increased steadily,transaction scale as well as market share increased gradually,shares pledged repo business is a new kind of loan business,what is more,it is an important channel to improve the securities company financing platform,and an important media to provide service to the economic entity as well as to solve the problem of small and medium-sized enterprise financing.This article is based on a hot big financial background,and make a summary of shares pledged repo business of the domestic securities company,the majority of the shares pledged repo business focused on large securities firms,such as CITIC securities,GUOTAI JUNAN securities,etc.,compared with these big brokerages,small and medium-sized brokerages meet with complex difficulties in the shares pledged repo business,so this article selected AVIC securities CO.,LTD.(hereinafter referred to as the "AVIC securities")as a case,on the one hand,AVIC securities make earlier batch of pilot qualified small and medium-sized brokerages,and it launched stock repurchase pledge business since the very beginning;On the other hand,owning to its relying on state-owned enterprises,AVIC securities has its own specific characteristics in the launch and improvement of shares pledged repo business.Through the research on the current situation of shares pledged repo business by AVIC securities,the article put forward the strategy of business development,and hope to present a scheme that may benefit other small and medium-sized brokerages.The paper includes the following parts:Firstly,it mainly elaborates its research background and significance,reviewing the relevant literature review at home and abroad,and put forward the basic structure,and the research methods on this basis.Secondly,it introduces shares pledged repo business,and then compared the main domestic financial institutions about the model of shares pledged repo business,it is concluded that the securities company is the best platform to carry out the business.Thirdly,it introduces the selected case of AVIC securities including the company background,the domestic current situation of shares pledged repo business as well as that of AVIC securities.Fourthly,it conducts a comprehensive analysis about advantages,problems and facing opportunities and challenges of AVIC securities.Then,combined with the problems of shares pledged repo business by AVIC securities and the current situation of AVIC securities,the paper proposes several methods of shares pledged repo business from the aspects of capital source,project source,internal control flow and business risk management.Finally,it comes to conclusion,points out deficiencies and outlook for the future.