What is the difference between refinancing and margin financing and securities lending? There are several differences.

Margin trading is believed to be familiar to many investors. It refers to the behavior that investors provide collateral to brokers and then borrow securities to buy or borrow funds to sell stocks. However, refinancing may not have been heard of. It is related to margin trading, but there are some differences.

What is the difference between refinancing and margin financing and securities lending?

1. Different providers: refinancing is a business provided by banks, funds, insurance companies and other institutions, while margin financing and securities lending is a business directly provided by brokers to margin financing and securities lending customers.

2. Different complexity: the refinancing business is relatively simple. Margin trading is more complicated.

3. Different procedures: refinancing is more complicated than margin financing and securities lending. Margin trading is directly provided by brokers to margin trading customers, but refinancing will be handled by banks, funds and insurance companies as intermediaries.

Refinancing is an arrangement to provide funds and securities sources for securities companies to carry out margin trading and securities lending business under the condition of insufficient funds and securities. The specific operation is that the securities finance company "transfers" the borrowed funds to the securities company after borrowing securities or funds. Refinancing is divided into securities lending business and refinancing business.

On April 10, CSI Finance indicated that it would reduce the refinancing margin ratio of securities companies from now on. For companies with high credit rating, the margin ratio will be reduced from 20% to 5%; Companies with good credit status decreased from 20% to10%; The remaining companies decreased from 25% to 15%. CSI Financial predicts that after the margin ratio is lowered, about 30 billion yuan of brokerage funds will be released, which can reduce the capital occupation of brokers and improve the efficiency of fund use.

Generally speaking, refinancing provides funds and securities sources for brokers to carry out margin trading and securities lending business. Investors need to open the corresponding authority to participate in the margin financing and securities lending business, and the risk of margin financing and securities lending is relatively high, so everyone should invest cautiously.