Transfer financing market-oriented reform ushered in substantial progress - On October 20, China Securities Finance Co., Ltd. (hereinafter referred to as "China Securities Finance") announced the launch of a pilot program for market-oriented transfer and financing business to improve the efficiency of resource allocation in the capital market and better serve the diversified financing needs of securities companies.
At the same time, CSI Finance decided to lower the transfer financing fee rate by 40 basis points as a whole. The specific rates for each period level after adjustment are: 2.10% for 182 days, 2.40% for 91 days, 2.50% for 28 days, 2.60% for 14 days and 7 days.
CSI Finance stated that the reduction of the transfer financing fee rate this time is a normal operating adjustment based on the interest rate level of the capital market, aiming to meet the low-cost financing needs of securities companies, promote compliant funds to participate in market investment, and maintain the stable and healthy development of my country's capital market.
serves the diversified financing needs of securities companies
transfer financing business is a supporting system arrangement for margin financing and securities lending business. It was launched in 2012. As of the end of September this year, it has provided a total of 1.7 trillion yuan in funds to the market, which has better supported the development of margin financing and securities lending business of securities companies. However, industry insiders reported that the current transfer and financing business adopts the "fixed term, fixed fee rate" transaction method. As the business continues to deepen, problems such as inflexible maturity and non-marketization of fees are gradually emerging, and it is difficult to adapt to the diversified financing needs of securities companies.
According to reports, under the current trading model, the transfer and financing period is divided into five levels (7 days, 14 days, 28 days, 91 days and 182 days), and each level corresponds to a fixed rate. Securities companies declare within the credit limit of transfer and . The transfer and bribery platform automatically matches and completes transactions. China Settlement and Payment funds, and funds are available in real time after the funds arrive.
Compared with the current model, the changes in market-oriented financing business are mainly reflected in the adjustments on the front end of the transaction:
First, securities companies independently determine the term, amount and fee rate of funds used.
Second, the representative fair interest rate and other factors of the CSI Financial Company's comprehensive interbank certificate of deposit and other funds markets are determined and announced; the lower limit of the transfer financing rate declared by securities companies should not be lower than the lower limit of the transfer financing rate.
Third, CSI Financial Company sets a three-rate upper limit for the corresponding three-rate period range. The upper limit of the transfer financing fee rate is the highest price for transfer financing loans; the transfer financing fee rate declared by a securities company should not be higher than the upper limit of the transfer financing fee rate.
4 is to conduct bidding transactions once a week, and the transfer platform will automatically match the effective declaration of securities companies and transfer funds through the existing clearing and settlement path of China Settlement.
CSI Finance introduced that the core of this reform is "flexible term and bidding fee rate" - CSI Finance sets three period ranges: short (1-28 days), medium (29-91 days), and long (92-182 days), corresponding to the upper and lower limits of the three rates. Securities companies can independently determine the use period of funds within a period of 1-182 days and quote between the upper and lower limits of the transfer and financing fee rate. The bidding transaction was reached by the centralized matching of the Trans-Rongtong platform. Declaration on the same day, transaction on the same day, and funds available on the same day.
"This market-oriented reform of financing transfer is aimed at improving the efficiency of resource allocation in the capital market and better serving the diversified financing needs of securities companies." CSI Finance said.
promotes the orderly development of margin financing and securities lending business
Experts believe that this reform optimizes the dynamic adjustment mechanism for the transfer financing fee rate, promotes the transfer financing fee rate to follow the market, and provides greater freedom in the life of funds. For securities companies, market-oriented financing will better match fund planning and meet differentiated needs. After the reform, the transaction efficiency of the transfer financing business has been improved and the processing cycle has been compressed, which is conducive to positively guiding funds to enter the market in a standardized manner and promoting the orderly development of margin financing and securities lending business.
Zhou Zhigang, member of the Party Committee and member of the Executive Committee of CITIC Construction Investment, said that this time, CITIC Finance lowered the transfer financing fee rate by 40 basis points, which better met the low-cost financing needs of securities companies. At the same time, through the implementation of market-oriented reform of transfer financing, securities companies can independently determine the use period of funds within a period of 1-182 days, and quote between the upper and lower limits of the transfer financing fee rate, better implementing a market-oriented bidding trading mechanism.
Huatai Securities Chief Financial Officer Jiao Xiaoning believes that the market-oriented reform of this transfer and financing is of great significance to further optimize and improve the transfer and financing system and promote the healthy development of margin financing and securities lending business.
Jiao Xiaoning analyzed that the transaction mechanism of the transfer financing business is adjusted to "flexible term and bidding fee rate", which can not only better serve the diversified financing needs of securities companies, but also avoid the transfer financing fee rate deviating from the market and effectively improve resource allocation efficiency. Pricing is more market-oriented, in line with the market, and has more flexible term, which will help meet the business needs of securities companies and reduce the financing costs of securities companies.
Promotion in step by step, and implement
China Securities Journal·CSI Taurus reporter learned that CSI Financial Company has fully solicited opinions from market institutions and completed the design of relevant business and technical solutions. In the future, a deadline range will be selected for pilot projects, and promote it step by step, and implement it safely. During the
pilot period, the current trading methods and market-oriented bidding were in parallel. Specifically, the capital demand for securities companies within the pilot period range is achieved through participating in market-oriented bidding, and the capital demand for the remaining period ranges is continued by the current trading methods. After operating for a period of time, CSI Financial will turn the pilot into routine in a timely manner based on the pilot progress.
CSI Financial Company will also optimize supporting service guarantee measures, including appropriately expanding the credit limit of medium and high-quality securities companies to allow securities companies to participate in bidding with a certain credit limit on the basis of retaining existing transfer and financing contracts; try to set the lower limit of the transfer and financing fee rate as close as possible to the capital market interest rate, and keep it at a relatively low level; optimize the margin payment mechanism, and securities companies can pay the margin after the bidding results are announced and before the financing funds are transferred without paying the full margin in advance; the existing transfer and financing contract can be borrowed again when it expires, and the borrowing rate refers to the bidding transaction rate.
CSI Finance stated that in the next step, under the guidance of the China Securities Regulatory Commission, securities companies will be organized to carry out technical system transformation, testing and business training, and play a positive role in guiding funds to standardize entry into the market.
Editor: Li Ruoyu Ya Wenhui
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