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Under the combined influence of various factors, the balance of securities lending and the balance of securities lending have continued to decline in recent years. The balance of securities lending has dropped by more than 90% from its historical high, while the balance of securities lending has also dropped by more than 90% this year.

Some experts believed in an interview with Securities Times reporters that the substantial reduction in the balance of securities lending and securities lending has alleviated the market selling pressure, while also weakening the asymmetric advantage of the securities lending "T+0" intraday trading strategy, which is conducive to improving market sentiment and stabilizing market trends.

In addition, the data also shows that while the balance of securities lending and the balance of securities lending have dropped significantly, the balance of financing, which is a multi-party force, has remained relatively stable in recent years.

The balance of securities lending has dropped by more than 90% from its historical high

According to statistics, the reporter found that the balance of securities lending has continued to decline in recent years. As of August 19, the balance of securities lending fell to 13.7 billion yuan, which has dropped by about 80% from the end of last year and more than 90% from the historical peak. At the end of 2023, the balance of securities lending was 71.6 billion yuan, and the historical peak scale once exceeded 170 billion yuan.

Data shows that the balance of securities lending has undergone drastic changes in recent years. Before 2015, the balance of securities lending was always below 10 billion yuan. On April 9, 2015, the balance of securities lending exceeded 10 billion yuan for the first time, but soon fell back and remained below 10 billion yuan for the next four years.

On July 24, 2019, the balance of short selling exceeded 10 billion yuan again, which coincided with the third trading day after the Science and Technology Innovation Board began trading. Since then, the balance of short selling has grown steadily.

In 2020, the balance of securities lending further expanded significantly, and soon exceeded 100 billion yuan for the first time on October 21, 2020. The historical peak of the balance of securities lending occurred on September 10, 2021, when the balance of securities lending reached 173.9 billion yuan at the close of the day, and then began to decline. It is worth noting that throughout 2022, the balance of securities lending has repeatedly exceeded 100 billion yuan or fallen below 100 billion yuan, but the overall balance of securities lending is still relatively high.

For most of the first three quarters of 2023, the size of the securities lending balance changed very little, generally maintaining above 90 billion yuan. Starting from the fourth quarter of 2023, the size began a new round of decline. The large-scale and deep decline in the securities lending balance occurred in 2024, from more than 70 billion yuan at the beginning of the year to below 50 billion yuan in February this year, and then fell below several billion yuan integers in succession.

The balance of securities lending has also dropped by more than 90% this year

As the scale of securities lending decreases, the scale of securities lending is also decreasing. Data shows that the balance of securities lending has dropped by more than 90% this year, and the scale has fallen below 10 billion yuan. As of August 19, 2024, it was 7 billion yuan. At the end of last year, the scale of securities lending was more than 110 billion yuan.

Data shows that the pilot program of securities lending was launched on February 28, 2013. The scale of securities lending was not large in the early stage. In the fourth quarter of 2014, the balance of securities lending exceeded 10 billion yuan for the first time, and returned to below 10 billion yuan again in 2015. In 2019, the balance of securities lending exceeded 10 billion yuan again, and ushered in explosive growth in 2020, breaking 100 billion yuan for the first time on October 20, 2020. As of September 10, 2021, the balance of securities lending reached a historical peak of 182.2 billion yuan. Since then, the balance of securities lending has slowly declined, but it has remained stable overall.

The latest wave of significant decline in the balance of securities lending began in the fourth quarter of 2023, and began to accelerate in 2024. During this period, it not only fell below the 100 billion yuan mark, but also subsequently fell below several 10 billion yuan integer marks.

The decline in the scale of securities lending and securities lending since the beginning of this year has been significantly affected by policies. On February 6 this year, the spokesperson of the China Securities Regulatory Commission answered questions from reporters about the securities lending business of "two-margin" and said that three measures were proposed to further strengthen the supervision of securities lending business. First, suspend the increase of securities lending scale, with the current securities lending balance as the upper limit, and suspend the increase in accordance with the law.The scale of the company's securities lending is gradually being settled; second, requirementsThe company has strengthened the management of customer trading behaviors, and strictly prohibited the provision of securities lending to investors who use securities lending to implement intraday revolving transactions (disguised T+0 transactions); third, the supervision and law enforcement efforts will continue to be strengthened. The CSRC will crack down on illegal and irregular behaviors such as improper arbitrage through securities lending transactions in accordance with the law to ensure the smooth operation of securities lending business. In addition, on July 10 this year, the CSRC approved the application of China Securities Finance Corporation to suspend the securities lending business in accordance with the law, which will be implemented from July 11, 2024.

Yu Yang, deputy director of the Institute of Financial Development and State-owned Assets and Enterprises of the China (Shenzhen) Institute for Comprehensive Development, believes in an interview with a Securities Times reporter that the balance of securities lending and securities lending has decreased significantly in recent years. The main reason is that a series of regulatory policies have been adjusted, including the China Securities Regulatory Commission's approval of the application of the China Securities Finance Corporation to suspend securities lending business in accordance with the law, the increase in the margin ratio for securities lending, the increase in securities lending costs, and the ETF funds' active reduction in the scale of securities lending. In addition, the reduction in the proportion of securities lending "T+0" intraday trading strategies and the withdrawal of new funds from the market have also reduced the demand for securities lending business.

Yu Yang believes that, on the one hand, the substantial reduction in the balance of securities lending and securities lending has reduced the market selling pressure, and also weakened the asymmetric advantage of the securities lending "T+0" intraday trading strategy, which is conducive to improving market sentiment and stabilizing market trends. On the other hand, the suspension of securities lending business will reduce the richness of domestic capital market tools and may indirectly reduce capital liquidity.

Financing balance remains stable

While the balance of securities lending and securities lending has dropped significantly, the size of financing balance has remained relatively stable in recent years.

After the launch of margin trading, the margin balance in the A-share market also experienced significant fluctuations. Data shows that in the first few years after the launch of margin trading, the financing scale was generally low, and the margin balance exceeded 100 billion yuan for the first time in January 2013. In the following 2014 and 2015, the margin balance further experienced explosive growth, exceeding 1 trillion yuan for the first time in December 2014, and on June 18, 2015, the margin balance reached a historical peak of 2.27 trillion yuan. After that, with the adjustment of the A-share market, the margin balance fell rapidly, once falling below 1 trillion yuan.

However, since the financing balance returned to above 1 trillion yuan in 2020, the overall fluctuation has become smaller, and the scale has remained above 1.4 trillion yuan most of the time in recent years.