On Monday, the market-making and securities lending business of the Science and Technology Innovation Board was officially launched. Yesterday, my country Securities Finance Co., Ltd. (hereinafter referred to as "China Securities Finance") announced the operation status of the first day of market-making and securities lending. On the same day, Huatai Securities and other Zhanye securities firms lent 4 shares on the Science and Technology Innovation Board from China Securities Finance, with a total of 103,500 shares borrowed and a total amount of about 7.2 million yuan.
According to industry insiders, market makers can buy market-making securities from the secondary market, and they can also lend from China Securities Finance after the securities lending business goes online. Relatively speaking, market-making and borrowing of securities can broaden the channels for obtaining securities sources, which is expected to reduce the cost of building positions for securities companies, facilitate the development of market-making business, improve the ability to deal with risks, and thus improve the overall market pricing efficiency.
The so-called market-making and borrowing business for the Science and Technology Innovation Board refers to the fact that securities firms can borrow securities from China Securities Finance to sell them if the source of securities is insufficient during the market-making process of the Science and Technology Innovation Board. Previously, on October 28, China Securities Finance, the Shanghai Stock Exchange and my country Settlement jointly issued the detailed rules for the market-making and securities lending business of the Science and Technology Innovation Board, which clarified the relevant operations and requirements for securities companies to lend stocks from China Securities Finance to the Science and Technology Innovation Board for market-making transactions.
In detail, on the first day of the exhibition, brokerages lent the Sci-Tech Innovation Board stocks Novozyme, Western Superconductor, Weigao Orthopedics, and Trina Solar from the China Securities Finance Office. Among them, Novozyme lent a large number of 76,500 shares; Trina Solar lent a small number of 1,500 shares.
Judging from the period of borrowing securities, the period of these stocks ranges from 3 days to 30 days. Judging from the interest rate of borrowing bonds, it basically fluctuates around 4%, with the lowest being 3.4% and the highest reaching 6.6%.
Huatai Securities stated that on the first day of its launch, the company successfully completed the full-scenario transaction of market-making securities borrowing on the Science and Technology Innovation Board. The Sci-tech Innovation Board’s market-making business provides securities source support, exerts the effect of the market maker mechanism, and improves the liquidity and pricing power of the Science and Technology Innovation Board.
"On the same day, we also did business exhibitions and tested the bond lending process, and everything went well." A person related to the market-making business of another leading brokerage firm told the Securities Times reporter.
It is understood that market-making and securities lending is a key supporting mechanism for market-making affairs, and an important mechanism guarantee for giving full play to the functions of market makers, improving the liquidity of the Science and Technology Innovation Board, enhancing market vitality, and improving pricing efficiency and price stability.
In addition, the market-making and securities lending business is also good for some securities holding institutions. "In this business chain, securities firms, as market makers, are the ones who borrow securities, which means that there are people who lend securities. Some public offerings, insurance and other organizations are the people who lend securities. Interest is collected, and the interest rate of some major securities sources may even exceed 10%, so this is also part of the income." A brokerage securities business person told reporters.
The reporter noticed that the detailed rules for market-making and securities lending business stipulate that qualified public offering funds, social security funds, insurance funds and other institutional investors, as well as strategic investors participating in the initial public offering of issuers on the Science and Technology Innovation Board, and other securities lending and trading lenders can As the lender of market-making securities lending business.
China Securities Finance stated that in the next step, under the guidance of the my country Securities Regulatory Commission, it will continue to cooperate closely with the Shanghai Stock Exchange and my country Settlement, continue to actively promote the pilot reform of the market maker mechanism of the Science and Technology Innovation Board, and further exert the effect of the "test field" of the reform of the Science and Technology Innovation Board. It will serve the national innovation-driven development strategy well and promote the high-quality development of the real economy.