SFC Evening Speech: Cheng Also Levers, Failure Lever

"Cheng also levers, losing leverage" is a real portrayal of the recent A share market.

However, there has been much controversy over the "deleveraging" in the A share market.

In fact, after the accelerated deleveraging process in recent months, the overall leverage ratio of the A share market has been greatly reduced, and the scale of the on site financing and the OTC capital allocation has also seen an alarming decline.

According to the current attitude of regulators, the work of deleveraging will continue.

However, with the moderate relaxation of policy provisions, it has also eased the intensity of capital allocation liquidation, which has also reduced the anticipated pressure of the market.

In response, the SFC issued a statement on the evening of 17, but investors need not panic too much.

The author believes that in the process of deepening the "deleveraging" task, the clean-up still needs to be further cleaned up.

However, in view of the current market environment, the market has gradually eased the intensity of the allocation of funds, and has not set a rigid time limit, so as to adapt to the market's ability to bear down and relieve the psychological burden of the market.

Among them, in the field of financing, for example, as of now, the A share market's two balance has fallen below the trillion mark, and fell below the level of 940 billion yuan.

Taking the off court distribution as an example, after the severe investigation and strict combat in recent months, the potential OTC distribution business in the A share market has been unprecedentedly cleaned up.

According to the previous plan, the stock allocation of the A share market will be cleaned up in four stages.

Obviously, in accordance with the above process, in fact, the A stock market has completed the first phase of the stock allocation clearance work, and according to the original plan, it will complete the second stage of cleaning up before September 18th.

Specifically, that is to say, the securities dealers between 10 yuan and 5 billion yuan are required to complete the liquidation before September 18th.

In the face of the "one size fits all" clearance measures of some brokerages, it will undoubtedly lead to the escalation of contradictions between securities companies and trust companies, and at the same time, it will also constitute a profound blow to the vital interests of investors.

In this regard, in the market to accelerate the "deleveraging" trend, not only to the trust and some of the market business has a heavy impact, but also accelerated the distribution of the disk fled, resulting in the A share market once again bear huge pressure.

In the past two days, in the A share market, the most widely reported is the rumor that the stock allocation has been postponed.

However, with the public announcement of the SFC on the evening of 17, it has also brought some uncertainties to the market.

According to the public statement of the CSRC that night, it was requested to continue to clean up and rectify the law.

However, it is not necessary to simply adopt a "broken" approach.

In fact, in the light of that night

The public statement, on the face of it, will bring uncertainty to the market.

However, from the actual analysis, it has given the market some room to clean up the stock.

Among them, from the relevant provisions, not only stressed the need not unilaterally relieve.

We should simply adopt the "one broken" way, and also require that securities companies should consult with clients to adopt various modes of compliance according to law. They can take the assets of illegal accounts to pfer to the same investor's account through non paction pfer, red rush and blue subsidy, or cancel the external access authority of information system and use legal paction mode to deal with it.

Obviously, if the "deleveraging" task in the A share market has not been fully and effectively cleared up, the OTC funds will not come in easily.

At this point, as the market "deleveraging" work is coming to an end, next, it will also enter the long repair period of confidence in the market.

However, it should be noted that in the environment of leveraged capital leveraging the market gradually weakening, it will also reduce the expected liquidity in the future market.

At that time, even if the systemic risk of the market is fully released, it does not mean that the market will immediately come out of the new bull market.