Two financial control refresh limit analysis need not be panicRecent stock market gains wider attention, industry analysts believe that in addition to the operations of the Central Bank's money supply, the SFC recently, control of the two financial business "to escape its responsibility."
on January 16, the 12 securities firms out of the two into a ticket by the SFC, CITIC, haitong, guotai Junan 3 was halted two into new, industry leading brokerage account for three months, refresh the margin areas supervisory penalty limit. The punishment sparked market earthquake, on January 19, the Shanghai index tumbled 7.7%, closed at 3116.35 points, down 260 points.
on January 18, CITIC Securities said in a statement, because of extensions to expiry margin contract issues, the company was the SFC has adopted the administrative controls. In this regard, the company will suspend new open a margin customer credit account 3 months expired outstanding positions will force; margin account account opening conditions by client assets over RMB 300,000 yuan to 500,000 yuan.
analysis, CITIC securities margin financing business brokerages leading a microcosm of the offender, the financing business brokers of violations were administrative supervision by the SFC has adopted the measures a total of 12. This rally began last July, known as the bull market of the lever, which added amounts of funds contributed to this wave of market of the lever. Among them, the financing business is one of the most powerful lever after the size has reached hundreds of billions of Yuan. Along with the prosperity of the stock market and financing the rapid expansion of business, some non-standard violations are inevitable. Penalize breaches of the regulator is not to stifle this innovative business, but to balance innovation and risk prevention, promote the steady and healthy development of the stock market.
said one broker, financing business is mature the market's operations, regulating margin financing business to provide adequate funding for the capital market, also helps to divert Bank funds in the normal flow. But even is in mature market, financing thaw coupons is a items risk high of business, and General securities trading exists of policy risk, and market risk, and default risk, compared, financing thaw coupons trading exists unique risk, as securities investment losses zoom risk, and was forced flat warehouse of risk, and trading cost increased of risk, and standard of securities range adjustment, and suspended trading or terminated listed risk,. Therefore, the margin transactions of securities companies internal risk management is a major challenge.
on the market's "overreaction" speech, the Commission made it clear that, from the results, it is, securities margin financing, such as overall business running smooth, relatively controllable and found no major violations, and also for marketing fed a dose of relief medicine. Yingda securities Li Daxiao, Chief Economist, said the firm attitude of the SFC, is on the margin of risk monitoring important locations. The decisions of the SFC, in the short term would have some impact on brokerage shares, but we all don't panic too much.