Communication, Financials, Automotive Jan 17, 2022 06:19 PM (GMT+8)
Financial Associated Press, January 17 - the Margin Trading Committee of China Securities Association recently held a symposium on the risk management of the two financing businesses of securities companies, which fully discussed the risk management of the two financing businesses and the provision for credit impairment, and recently issued the suggestions on the risk management of margin trading and the measurement of credit impairment to the industry, Convey the good experience and practices of relevant securities companies and issues that need attention for the industry to learn from. In terms of business risk management, on the one hand, securities companies need to strengthen the dynamic control of transactions and refine the monitoring of position concentration and volatility; On the other hand, it is necessary to continuously improve customer credit investigation and credit, maintain a reasonable collateral structure, and effectively prevent default risks, especially large losses. In terms of credit impairment measurement, securities companies should pay special attention to the procyclicality of risk accumulation of margin trading and securities lending business and the difference of customer trading behavior, and fully withdraw the provision for asset impairment of credit business based on the principle of accounting prudence in combination with the market operation trend and the risk characteristics of credit account. Data show that since mid July 2021, the balance of A-share financing and financing has been maintained at more than 1.8 trillion yuan.
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