On Risk Management Of Stock Pledged Repo Transaction In A Securities

The stock pledged repo business specifically refers to the standardized in-house stock pledge business carried out by the securities company in June 2013,which was jointly issued by Shanghai and Shenzhen Stock Exchanges.It is a specific business derived from equity pledge,which is different from the concept of equity pledge in a broad sense.The stock pledged repo transaction is an innovative securities business developed in China’s securities market in recent years.It aims to expand the financing means of the major shareholders of listed companies and improve the financing difficulties of enterprises and individuals.This business means that financiers get funding from investors by holding shares or other pledged securities,and agree to return the funds or release pledged securities in the future.Compared with other models of equity pledge,the stock pledged repo business is greatly simplified in terms of operational procedures,and the difficulty of default processing is relatively simple.Uniformly carried out by securities company,it has become a standardized securities business.Once launched,the business received high attention and wide recognition from the market and developed rapidly.This business can not only activate the securities market,but also solve the problem of corporate financing to a certain extent,promote the development of the real economy,and increase the income of securities companies,and gradually become an important business of various securities companies.However,the stock pledged repo business has higher risks,and the business has only developed in China for only 5 years.The relevant theoretical research results are few.When the securities market is facing risks,China’s securities companies are likely to face extreme risks due to improper risk management.Therefore,it is of great practical significance to conduct in-depth research on the risk management of stock pledged repo business.This paper first systematically summarizes and studies the theories of risk management and modern securities risk management,and reviews the related theories of stock pledge.Secondly,an in-depth investigation was conducted to collect and consult a large number of information on the stock pledge repo risk management of securities companies in the industry,and the relevant data were compiled and counted,forming a risk management framework that securities companies should follow in conducting various businesses.Thirdly,using modern risk management theory and system management theory to analyze the Letv project carried out by A securities company,and find out the problems existing in the project.Finally,according to the above analysis,put forward suggestions and countermeasures for A securities.The research in this paper finds that A securities company has implemented a comprehensive risk management strategy and established a risk prevention system under the comprehensive risk management strategy.However,the comprehensive risk management strategy and the control practice of securities specific business risk management have not been effectively combined.Conscious risk management corporate culture needs to be improved.There are many problems in the process of stock pledge repo business of A securities company.A securities company should establish a dynamic asset allocation strategy,reasonably adjust the scale of the overall stock pledge business,and promote the company’s stock pledge business to shift from focusing on scale to fine matching risk.