Financial Investment News reporter He Menglu
On January 28, in order to implement the investor-oriented regulatory concept and strengthen the supervision of the lending of restricted shares, the China Securities Regulatory Commission (CSRC) further optimized the securities lending mechanism after full demonstration and evaluation.
On January 29, the three major indexes of A-shares collectively closed down, and boosted by the above-mentioned good news, in the context of the general decline, the new shares were active against the trend, Yongda shares, Jindi shares, Jinkai Shengke, Tengda Technology and other shares rose to the limit.
It reflects the regulatory intent of two aspects
The reporter of the Financial Investment News learned that the adjustment mainly optimizes the securities lending mechanism from two aspects. Specifically, the first is to completely suspend the lending of restricted shares; The second is to adjust the market-based declaration of refinancing securities from real-time availability to next-day availability, restricting the efficiency of securities lending and lending. Due to factors such as system adjustments, the first measure will be implemented from January 29, and the second measure will be implemented from March 18.
The CSRC further stated that in October 2023, the CSRC cancelled the lending of special asset management plans set up by senior executives and core employees of listed companies through participation in strategic placements, and restricted the lending methods and proportions of other strategic investors in the early stage of listing. Since the implementation of the new regulations, the balance of loans by strategic investors has dropped by nearly 40%, and good results have been achieved.
Therefore, on the basis of summarizing the experience of optimizing the arrangement of the securities lending mechanism in the early stage, and in accordance with the idea of steady progress and step-by-step implementation, the optimization of the securities lending mechanism mainly reflects the regulatory intentions in two aspects. The first is to highlight fairness and reasonableness, reduce the efficiency of securities lending and lending, restrict the advantages of institutions in the use of information and tools, give all kinds of investors more time to digest market information, and create a fairer market order; The second is to highlight strict supervision, restrict the lending of all restricted shares in stages, further strengthen the supervision of restricted stock lending, and at the same time, resolutely crack down on illegal behaviors of detouring and cashing out in the name of securities lending. The SFC said.
Subsequently, the Shanghai and Shenzhen Stock Exchanges simultaneously issued the Notice on Suspending Strategic Investors' Lending and Allotment** within the Promised Holding Period. At the same time, China Financial Co., Ltd. issued a notice on the suspension of refinancing borrowing.
Illegal arbitrage is effectively restricted
With the continuous release of favorable policies, some market participants believe that the reform of securities lending business is of positive significance for improving the long-short structure of the market, restraining improper arbitrage, and enhancing market fairness. With the quantitative changes accumulated in policy reforms driving qualitative changes, the capital market is expected to stabilize and recover.
CITIC** said that since the China Securities Regulatory Commission tightened the loan on October 14, 2023, the overall balance of the loan has decreased by nearly 40%. Among them, the loan balance of the science and technology innovation board has increased from 19.7 billion shares fell to 12.7 billion shares, the balance of loans on the Growth Enterprise Market decreased from 21.42 million shares to 4.92 million shares, and the corresponding balance of securities lending in the two sectors decreased from 22.3 billion yuan and 11.2 billion yuan to 15.3 billion yuan and 8.7 billion yuan. According to the proportion of the impact in the previous stage, after the implementation of the new regulations, the scale of securities lending on the Science and Technology Innovation Board and the Growth Enterprise Market is expected to further decrease to about 2.6 billion yuan and 8 billion yuan, and the arbitrage channels for market violations are expected to be effectively restricted.
The new policy is conducive to the return of securities lending and refinancing mechanisms to their origins, and to better play the positive role of the market long-short balance mechanism in the effectiveness of capital market pricing, stabilizing abnormal stock price fluctuations, and refinancing in revitalizing the assets of long-term shareholding investors. Haitong ** said.
It is worth mentioning that in this adjustment, the trading of securities lending and borrowing has been changed from T+0 to T+1 settlement system, which has attracted wide attention from the industry. In this regard, some analysts believe that for brokers, real-time refinancing securities trading requires their systems and operation teams to maintain a high degree of vigilance and flexibility to cope with rapid changes in the market. By switching to next-day availability, brokers can manage risks based on longer market movements, allowing them to better control risk.
The above-mentioned analysts further said that further optimizing the securities lending mechanism may be beneficial to the long-term development of the industry, especially the head brokerages with the advantage of securities sources, such as CITIC**, CICC, Huatai**, etc.