When investors buy securities by financing, the financing margin ratio shall not be less than 50%. When investors sell securities by short selling, the margin ratio for short selling shall not be less than 50%.
When the amount of investors' margin is fixed, the higher the margin ratio, the smaller the scale of securities companies' margin financing and securities lending to investors. According to reports, the margin ratio is used to control the magnification of investors' initial funds, and the margin delivered by each margin financing and securities lending investment must meet the margin ratio requirements.
Extended data
Margin trading helps investors to express their expectations of the actual investment value of stocks, guide the stock price to reflect its intrinsic value, slow down the fluctuation of securities prices to a certain extent, and maintain the stability of the securities market.
There are many financing channels for securities companies, such as capital, to effectively alleviate the capital pressure in the market, so the liberalization of financing and the entry of bank funds into the market will be divided into two steps. In the downturn of the stock market, it can not only solve the urgent need, but also bring quite good investment income to institutions that need capital adjustment.
Stimulate the A-share market to be active
Margin trading is conducive to active market transactions, and the amplification effect of existing funds in the market is also a way to stimulate the active A-share market. Wu Chunlong and Chen Xiangsheng, analysts of CITIC Jiantou Securities, believe that the margin trading business is conducive to increasing the liquidity of the stock market.