Rivers and lakes regulatory capital sneak off with a sword cut "vine" touch "melon"

  "Financing will lead to sell-off or forced liquidation transactions are generally open limit-down, which can easily cause more panic, regulators to clean up such accounts is conducive to long-term healthy development of the market。
After the 'information management new regulations' introduction, in the form of an off-market offer for the classification of the product or came to an end。 "Brokerage source said。
  A source close to the regulators, who told the China Securities Journal reporter, in recent years, regulators continue to consolidate must strictly regulatory trend, the market also showed positive ecological change, further operation of the market steady。 I believe continuing to strengthen law enforcement inspection, the capital market will serve the real economy, help develop high-quality, and create a more open, fair and equitable market environment。
  With capital Phantom manipulation scam behind the March 14, the Commission organized inspection of law enforcement special news conference to announce the recent investigation of three cases。
Among them, "the North eight syndicate market manipulation case" suspected of multi-account, multi-use huge amounts of leveraged funds only time shares stock manipulation, to be punishable by a fine not top five grid penalty, up to the amount of confiscated billion, its highest amount ever recorded ticket, shocked the market。   With the ins and outs of the case surfaced, had once disappeared off-site with the capital market is also re-emerged in the field of view。
Commission survey shows that eight north-funded companies with extensive use of the service, to achieve a high leverage ratio。
  The case investigators, said: "North eight large-scale use in this case with a Chinese company, with the capital of intermediary services in Jiangsu and Zhejiang provinces particularly active provider of funds will be provided to the stock accounts and financial intermediaries with capital, and then by the intermediary with the capital the accounts and use the money to North eight Group。 The eight North intermediaries involved in the case with the capital stock account has close to a hundred, the amount of each account from several hundred thousand to tens of millions of dollars, a large scale。 "China Merchants Securities analyst Hou Chunxiao, Zhang Xia had written about the so-called off with capital stock is owned company assigned to finance the corresponding proportion of shareholders in accordance with the amount of available funds, so as to achieve amplification amount of money, which is equivalent to adding leverage in this process, with the capital the company will charge interest based on the amount and duration of funding it provides, by its very nature belong to private capital。
  "Off with the capital account, there are two types, one is the product family, one is personal account。
The so-called product family, is the son under the umbrella trust account; personal account is a personal account name, such as with the capital company executives, relatives and friends like。
"General manager of a brokerage business department in east China Yin explained that it。   According to its introduction, there with the capital needs of investors, will break into a certain margin in the product family or individual households, coupled with the company will then offer for priority funding in accordance with the agreed proportions, then buy the shares, the account shows the product name or trust personal account owner has certain degree of secrecy, will increase the difficulty of penetrating account。
  Hou Chunxiao, Zhang Xia said, and brokerage business financing compared to open brokerage margin trading business requires more than 50 million personal assets, leverage of 1 times, while private capital is no hard and fast with the indicator of capital, leverage generally up to 2-10 times, risky。
Because with funding agencies are not legally engage in legitimate institutional securities brokerage business, there is no internal control, risk control and external oversight, and thus free in legal and regulatory gray area。   Overleveraged enlarge the risk, "we generally do not recommend too much leverage, too easy a warehouse explosion。
"According to Shanghai, a company with a capital of staff, the company can provide 2 times to 9 times leverage, according to the company's risk control standards, there will be some positions and early warning line, open line requirements。
For example: 3 times leverage single stock position in less than eighty percent control requirements, and it will set the warning line and closed line, warning line of 60% of the stock, the stock is 50% open line; the higher lever, position control requirements lower levels, 7 times more single stock positions and require control 60%, 80% warning line of the stock, the stock is 70% open line of。
"Once below the warning line, investors need to margin calls within the agreed time, if not further margin calls and stock price fell open line, will encounter strong level。 One of the main force, "China Merchants Securities, according to reports, the mid-2015's hot market, the OTC market with the capital it is stirred。
After the perceived risks with the capital of the OTC, June 12, 2015, the Commission had issued "on the strengthening of the external security of information systems access management," which requires States Securities Regulatory Bureau shall urge the external securities companies standardize information systems access behavior。
July 12 the same year, the Commission released "on the clean up and rectify illegal securities business activities" to be sorted out with a capital offense, then off with the capital once disappeared。
  "Financing will lead to sell-off or forced liquidation transactions are generally open limit-down, which can easily cause more panic。
Regulators to clean up the account in favor of long-term healthy development of the market, due to off-site with the capital markets caused by soaring plunge is not conducive to investors to guide rational investment。 "A broker source said。
  "In addition to off-site with the capital, and some were with the capital by way of structured information management products。
Trust example, the product information management intercalated, by providing the structure of 318,3210, scaled to the lever 1: 3, 1: 4。
"General manager of a brokerage business department Mr. Wei expressed the Northeast。   Regulation sword hanging moments in the November 17, 2017, the central bank, China Banking Regulatory Commission, Securities Regulatory Commission, China Insurance Regulatory Commission, the SAFE jointly issued "Guidance on (draft) specification of financial institutions, asset management business," open to the community to solicit opinions。 Which clearly stipulates that the public offering of products, open private equity products, investment targets investments in single or bonds, stocks and other standardized products more than 50% of private equity products shall not be graded share。
  "This means in the form of an off-market offer for classifying products or came to an end。
"Hou Chunxiao, Zhang Xia expressed。   Mr. Wei said that the funds are profit-driven, will find ways to circumvent the regulation, which will undoubtedly make it harder for regulators to combat illegal cases, the healthy development of the securities market much work。   March 9, 2018, the Commission conducted a special inspection department research and deployment, clearly the focus of the investigation and handling of serious cases of illegal behavior are four categories in which the second class will be on the 2018 inspection of law enforcement focus areas, key directions and specific arrangements "serious accumulation of market risk, jeopardize the smooth operation of the market violations。 Illegal trading acts performed by means of new financial instruments, financial abuse of the name of science and technology, or across markets; including through illegal gathering market funds, abuse of leverage, amplify market risk cases。 "" In the long run, restrictions on off-site with financing that will advance the objectives of deleveraging, will help improve the investment environment for the stable development of financial markets play a supporting role。 "Hou Chunxiao, Zhang Xia expressed。   For ordinary investors, how should safeguard their own interests it?If you buy the stock suffered losses related manipulated whether to make a claim through the legal weapons it?  "Insider trading, market manipulation, are" provisions of the Securities Act prohibited acts ", although the provisions of these two acts causing losses to investors, should bear the liability。
But only in 76, 77 "Securities Act" had a principled provisions, and there is no corresponding enforcement regulations or judicial interpretations to support current investors basically not through litigation to claims for market manipulation and insider trading。
"Jiangsu Law Firm Hanyou Wei Hua Yi expressed。
  Hanyou Wei said that in recent years, regulators to strengthen supervision and increase efforts to deal with the securities market law violations, rights of shareholders and healthy development of the stock market has played a huge role in promoting。
But for investors, the current rights still exist some difficulties and obstacles court level, such as the filing is difficult, difficult to define, long time trial。 Recommended that the Supreme Court should be as soon as possible new judicial interpretation and implementation details of such cases in order to solve the current problem of the referee standards are not uniform, giving the healthy development of China's capital market to support law。 The parties to speed up the revision of the "Securities Act", drawing on the legislative practice of mature markets, increasing the terms of investor protection, strengthen protection for investors。