Is Yancheng Shengzhou Group's financing risky?

The financing of Yancheng Shengzhou Group is risky. Because margin financing and securities lending itself has the characteristics of leverage. Margin financing and securities lending increase the expected return and transaction risk. Expected returns correspond to risks. The greater the expected return, the greater the risk. In the process of margin financing and securities lending, if our guarantee has the market risk of ordinary trading, then the margin financing and securities lending transaction also includes its unique leverage trading risk, forced liquidation risk, regulatory risk and other risks such as credit and law. Investors must understand the relevant risks and be proficient in credit risk before conducting margin trading. The credit risk faced by project financing refers to the inability of project participants to perform their duties.