Xinhua News Agency, Beijing, February 7 (Xinhua) “China Securities Journal” published an article on the 7th “Strengthening Business Supervision and Continuous Optimization of Securities Lending Mechanisms.” The article stated that the spokesperson of the China Securities Regulatory Commission responded to reporters’ questions on February 6 regarding the “two financing” securities lending business. A spokesman for the China Securities Regulatory Commission said that the China Securities Regulatory Commission has proposed to suspend the scale of new securities lending, strictly prohibit securities companies from providing securities lending to investors who use securities lending to implement intraday reversal transactions (disguised T+0 transactions), and continue to increase supervision and enforcement efforts. Measures to further strengthen the supervision of securities lending business in three aspects. Many fund companies, including China Asset Management, China Southern Asset Management, and E Fund, responded quickly and announced on the same day that they would suspend new lending of refinancing securities.
In the view of industry insiders, the China Securities Regulatory Commission has further strengthened the supervision of the securities lending business, responded to hot spots of market concern, and proposed for the first time to strictly prohibit disguised T+0 transactions in securities lending, which reflects the concept of maintaining a fair trading order in the market and is also conducive to boosting investment. or confidence. It is expected that the scale of securities lending will decrease steadily and orderly in the future.
Disguised securities lending is strictly prohibited T+0
“After research and decision, I will propose three measures to further strengthen supervision of the securities lending business.” a spokesman for the China Securities Regulatory Commission said.
Specifically, the first is to suspend the new scale of securities refinancing, with the current balance of securities refinancing as the upper limit, and to temporarily suspend the new scale of securities refinancing by securities companies in accordance with the law, and the existing stock is gradually closed; the second is to require securities companies to strengthen the management of customer trading behaviors. , it is strictly prohibited to provide securities lending to investors who use securities lending to implement intraday reversal transactions (disguised T+0 transactions); third, continue to increase supervision and enforcement efforts, crack down on illegal activities such as improper arbitrage using securities lending transactions, and ensure that securities lending Business runs smoothly.
(File photo. Released by Xinhua News Agency)
According to analysis by industry insiders, the suspension of the scale of new securities refinancing has directly restricted the main source of securities lending. At the same time, it has been clarified that “the stock will be gradually closed”, which not only puts forward requirements for the stock arrangement, but also makes arrangements for a “gradual” solution, which is expected to maintain the market. Under the premise of stable operation, the scale of securities lending will decrease steadily and orderly.
After the announcement of measures such as suspending the scale of new refinancing of securities, E Fund, China Asset Management, GF Fund, Southern Fund, Wells Fargo Fund, Cathay Fund, Huabao Fund, Huatai-PineBridge Fund and other public funds announced on the 6th that they would strictly Implement the relevant requirements of the Securities Regulatory Commission on the securities lending business, suspend the new scale of refinancing securities lending, prudently and steadily promote the gradual closing of the existing scale of refinancing securities lending, and ensure the smooth operation of related businesses.
Promote the securities lending system to function better
The margin trading system is a common basic trading system in mature capital markets. It provides trading tools for both long and short parties in the market and is conducive to improving the price discovery capabilities of the capital market. my country’s margin trading mechanism was introduced in 2010 and has become an important Risk management tools. Since the development of the securities lending business, relevant systems have been continuously optimized, but the scale is still relatively small.
“Recently, the China Securities Regulatory Commission has taken a series of measures to strengthen supervision of the securities lending business in light of market conditions. Since the implementation of the relevant system, the balance of securities lending has dropped by 24%, currently to 63.7 billion yuan, accounting for 0.1% of the circulating market value of A-shares. ” said the spokesperson of the China Securities Regulatory Commission.
Experts analyze that the total scale of securities lending is not large. Compared with the overall trading power of the A-share market, the impact of current securities lending transactions on the trend of the A-share market is very limited.
Currently, the exchange has strict quotation rule requirements for securities lending and selling transactions. The Shanghai, Shenzhen, and Beijing stock exchanges all clearly stipulate that “the declaration price for securities lending and selling shall not be lower than the latest transaction price of the security”, and perform front-end monitoring of investors’ declaration prices for securities lending and selling during the transaction process.
Continue to standardize securities lending behavior
Since the release of new securities lending regulations in October 2023, the China Securities Regulatory Commission has taken many steps to continue to regulate securities lending behavior, and the policy implementation has achieved remarkable results.
“In October 2023, a notice was issued to cancel the lending of securities by listed company executives and core employees through special asset management plans established through participation in strategic placements, and to moderately restrict the lending methods and proportions of other strategic investors in the early stages of listing. Overall, the policy implementation The effect is in line with expectations.” Shen Bing, director of the Institutional Department of the China Securities Regulatory Commission, said at a press conference of the China Securities Regulatory Commission recently.
The China Securities Regulatory Commission recently held a 2024 system work conference to emphasize the emphasis on the investor-oriented concept. Focus on improving issuance pricing, quantitative trading, securities lending and other regulatory rules, and clearly reflect the priority of protecting the legitimate rights and interests of investors, especially small and medium-sized investors.
On January 28, in order to implement the investor-oriented regulatory concept, the China Securities Regulatory Commission further optimized the securities lending mechanism.
Since the release of the above-mentioned arrangements, many securities firms have revised business contracts, adjusted trading rules, further strengthened business management, and prevented risks in the two-financing business. According to industry insiders, improving the transaction rules of the two financing businesses will help protect the rights and interests of investors.
2024-02-07 17:06:36
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