Category: Money tips Release Date: 2006-01-03
Once the introduction of margin trading business, small and medium investors need to pay attention what is the problem? As regards financing, first of all reminds me of the early stock market, there by relatives and friends formed a "joint fleet." Relatives or friends commissioned someone to "fry" shares, it will have as long as the fixed-income, which can be seen that marked the beginning of civil private financing. However, I come into contact with the case of view, "joint fleet" mostly broke up, and even this form has been eliminated by the market. The main reason is that "steering" and "Captain" is not "reef" is the hit "torpedo." 10 "speculation" after nine lose more recourse to the law, with predictable results.
Medium and small investors should invest in stocks than the treatment of their own funds more cautious, to look at margin trading business. The margin trading after the investment is high-risk investments. The broker, the lending of funds or securities to you, you must bear the corresponding costs; when the lending of funds or securities investment failure, you take the secondary market except a loss, but also bear the cost of borrowing, or even facing the risk of liquidation ; when the lending of funds or securities investment is successful, your earnings, in fact but also by the broker to slice, that is, you pay the cost of lending. Therefore, your investment behavior of the expected rate of return must be higher than the cost of margin trading.
So, how high it will be the cost of margin trading? If you do not take into account trading commissions factors, then the lending costs have at least higher than the risk-free interest rates. Otherwise, the broker can go to invest in treasury bonds, but there is no need margin trading to you. If the brokerage funds from banks, then the bank's lending rate is based on the implementation of national regulations. Even if the broker in order to attract customers, not to the customer, "overweight", but in any case, working for banks has become your fair share of work. In this case, your investment will increase the pressure. In the past, retail investors and no "right" involved in "tripartite agreement" mode of financing, it is because, as an individual, his transactions generated insignificant, hardly aroused broker interest. Therefore, margin trading business to carry out, if the "retail" cost more than the "big", then the risk will be even greater. Of course, strong risk-bearing capacity of the customer, can be an appropriate margin trading. Margin trading business as a result the time required for, the short-term operation, therefore, more welcome by the speculators. Inquire about the news in the past like some "big", as well as some Zuozhuang agencies are willing to sign the "tripartite agreement", its composition should be more than speculative investment component. Compliance of margin trading, with the "tripartite agreement" not the same, it involved the rights and responsibilities of all parties is very clear.
Finance purchase of new shares cause for concern. From the media reports of view, margin trading business will step forward, financing, prior to Securities Lending business, financing, IPO will first meet the purchase needs. In the past, domestic market exists, "ERNIE army," because the current applied to the secondary market investors, placement system. Old and new draw up the rear, and how IPOs, to be seen, but the subscription of new shares outside the market, there are also the "army," a considerable portion of the financing business to meet the needs of new share subscription. Overseas market after the IPO, were mixed, but the overall look will not be too far away from the issue price. Therefore, the risks are not large, this may be purchase "army" favored the financing of important reasons.
With the stock reform has deepened concern about the margin trading business has is coming.
For small investors, engaged in securities credit transactions of the most important lesson is that risk control. "Overdraft" stock, giving investors a lesson in some of the old is still a dull pain. The later development of another "underground financing" variant --- "tripartite regulatory agreement", so that some funds from the market, causing stock market volatility, resulting in a large number of trust management disputes, resulting in huge losses faced by many brokerage firms have been managed, and so the vicious circle of increasing the stock market risk.
Some investors believe that the ongoing margin trading is not the best time, because the market is still in the recovery, and the prices very likely to cause instability in the financing problem faced by investors to significant risks. Therefore, in the new historical conditions, participants in the securities of credit transaction for the parties to put forward higher requirements. We believe that the margin trading business, gate opening, China's stock market is bound to stir the surface of the pond.
