Recently, according to a judgment disclosed by China judicial documents network, a 69 year old woman in Guangzhou invested in stocks with leverage, and the two financing line of China Securities Co.Ltd(601066) securities credit of 66 million yuan fell below the closing line. After the strong leveling, the old man was unable to recover, and the outstanding China Securities Co.Ltd(601066) securities exceeded 10 million yuan.
What the hell is going on?
7 ten day old people living alone plus leverage stock speculation
After position explosion, it owes China Securities Co.Ltd(601066) more than ten million
The old man’s name is Su Yufu. He was born in 1953. He lives alone and has no children. His monthly pension is 10010 yuan. On March 22, 2017, she signed the contract for margin trading with China Securities Co.Ltd(601066) , which provided her with a total credit line of 66 million yuan
figure / China referee document network
China Securities Co.Ltd(601066) why is the credit line of 66 million yuan? The customer manager of a securities firm in Shanghai told the interface news reporter, Liangrong credit is generally evaluated based on the customer’s risk tolerance and customer assets. If the customer’s stock account assets are sufficient, the credit of more than 60 million is no problem . The proportion of credit is generally 1:1, up to 1:1.2.
According to the agreement of both parties, when the maintenance guarantee proportion of Su Yufu’s account is lower than 130% of the recovery line and above 110% of the minimum line, the account enters the recovery state, and the collateral shall be added within t + 1 day. Otherwise, China Securities Co.Ltd(601066) has the right to start the compulsory closing procedure on T + 2 day. If the guarantee ratio is lower than 110% of the minimum line, China Securities Co.Ltd(601066) has the right to immediately start the compulsory closing procedure.
As of February 1, 2018, Su Yufu had used the financing limit of RMB 33.355 million, but the maintenance guarantee proportion of his account fell to 128% on the same day, China Securities Co.Ltd(601066) notified Su Yufu twice on February 1 and February 2, respectively, asking to transfer into collateral or repay the debt of margin trading to ensure that the maintenance guarantee proportion was higher than 145%.
However, until February 5 of that year, Su Yufu still failed to add collateral or repay debts , maintaining the guarantee ratio and finally falling below 110%, China Securities Co.Ltd(601066) then forced the closing of shares in Su Yufu’s credit account. After the strong closing, some of Su Yufu’s debt of margin trading has not been paid off. According to the ruling made by the Beijing Arbitration Commission on May 31, 2019, Su Yufu still needs to repay the financing principal of 10.264 million yuan and overdue interest of 350000 yuan to China Securities Co.Ltd(601066) .
Since then, China Securities Co.Ltd(601066) applied for enforcement, but the two sides fell into a tug of war.
claiming to have cancer and living on pension
was suspected of transferring property
It is worth noting that Su Yufu was suspected of transferring property, but the act was revoked by the Guangdong High Court .
According to the judgment, Su Yufu owned a real estate with an area of 55.6 square meters in Yuexiu District, Guangzhou. At the beginning of February 2018, the property was transferred to his sister Su Yingli with a total price of RMB 1.414 million at a unit price of RMB 25412.68/m2. The transfer was completed on February 7. On February 15, Su Yingli paid the first house payment of 600000 yuan, and the remaining house payment of 814000 yuan was paid in monthly installments without interest, a total of 163 installments, each of 5000 yuan.
In this regard, according to Su Yingli, she did not know the business dealings between Su Yufu and CITIC. Su Yufu said that he sold the real estate involved in the case in order to pay for treatment and maintain his later life, and there was no subjective intention to transfer the property maliciously.
However, China Securities Co.Ltd(601066) believes that the real estate belongs to the school district, and the location is superior. The lowest online listing price of the community where the house involved in the case was 50000 yuan / m2 in 2018, which belongs to an obviously unreasonable low price . Su Yingli and Su Yufu are close relatives. She knows Su Yufu’s huge debt to China Securities Co.Ltd(601066) . She knows the purpose and reason of Su Yufu’s transfer of real estate at an obviously unreasonable low price. Su Yingli actually assists Su Yufu in transferring property.
Finally, the Guangdong High Court upheld the judgment of first instance, revoked Su Yufu’s act of transferring his real estate to the defendant Su Yingli, and restored the registration of the real estate to Su Yufu’s name
figure / China referee document network
In fact, after the court froze his bank deposits, Su Yufu applied to the court for reconsideration. The reason given was: his property had only a monthly pension of 10010 yuan, and he had been diagnosed with malignant tumor. He was 66 years old, had no job and no source of income, and depended on his pension to maintain his basic life .
In this regard, the applicant for enforcement replied that the funds in the account frozen by the court did not belong to the “necessary living expenses” of Su Yufu. Su Yufu transferred a real estate with an area of more than 55 square meters and a value of at least 2.5 million yuan in February 2018. According to Article 1 of the notice of Guangzhou Municipal Public Political Bureau and Guangzhou Municipal Finance Bureau on improving the minimum living security and related social assistance standards of Guangzhou in 2019 (SUI min GUI Zi [2019] No. 10), the minimum living security standard for urban and rural areas of Guangzhou in 2019 is 1010 yuan per person per month. According to Su Yufu, his monthly pension is as high as 10010 yuan, far exceeding the minimum living security standard of 1010 yuan in Guangzhou in 2019 . Even if they need the funds of the frozen account to maintain their basic livelihood, they can only give the funds that meet the monthly minimum living security standard from the frozen funds, that is, 1010 yuan per month. as for Su Yufu’s claim of cancer, according to the medical records submitted by him, his disease was cured in 2018 , and according to Su Yufu’s monthly pension and his disposal of real estate, his life should be better, there is no lack of necessary living expenses, and he has not provided evidence to prove that the cured disease needs additional living expenses.
The court finally rejected Su Yufu’s application for reconsideration
figure / China referee document network
However, Su Yufu has no other property to enforce. If the debts are offset by pensions and real estate, China Securities Co.Ltd(601066) still faces more losses . By the end of 2020, China Securities Co.Ltd(601066) had withdrawn 1.319 billion yuan of asset impairment losses, of which 28.025 million yuan had been withdrawn from the financed funds.
two financial disputes emerge one after another
Su Yufu’s experience is not an example.
According to public information, margin trading refers to the business of securities companies lending funds to customers to buy securities or lend securities to customers to sell securities . Securities transactions arising from margin trading are called margin trading. Margin trading is divided into margin trading and margin trading. A customer who borrows funds from a securities company to buy securities is called margin trading, and a customer who borrows securities from a securities company to sell securities is called margin trading.
Su Yufu was forced to close his position by China Securities Co.Ltd(601066) in 2018. In that year, the volatility of the A-share market increased, many investors increased leverage to win high returns, resulting in no return, and relevant disputes and lawsuits continued to surface .
For example, the judgment document network published a judgment on such a two financing dispute in 2019: a “post-80s” shareholder invested a large amount of money in a “seven consecutive falls” stock after lending his account and two financing “bypassing the bid”, resulting in compulsory liquidation and owed Guoyuan Securities Company Limited(000728) principal of up to 10.07 million yuan. In the second instance, the shareholder believed that Guoyuan Securities Company Limited(000728) had made a major mistake in knowing, allowing and cooperating with him to engage in bid circumvention. However, the court did not support his appeal.
In this regard, Sealand Securities Co.Ltd(000750) also said that affected by the continuous downturn of the securities market, the business scale of margin trading and stock pledge repurchase in the industry shrank, and the number of default events increased significantly in 2018.
From the content of relevant cases, is mainly caused by the customer’s inability to repay the financing liabilities or the customer’s claim for compensation for the economic losses caused by the forced closing of the customer’s account .
In fact, before investors conduct margin trading, securities companies will give sufficient risk tips : such as policy risk, market risk, default risk, system risk and other risks, as well as the unique investment risk amplification of margin trading. During the margin trading, investors shall maintain the corresponding guarantee proportion or pay off debts according to the contract signed with the securities company, otherwise they will face the risk that the collateral will be forcibly closed by the securities company. In terms of investment and education, margin trading is also one of the key areas.
In this context, the two financial disputes are still emerging one after another, which is worth pondering.
provide convenience for two fusion and standard winding
China Securities Co.Ltd(601066) a business department was ordered to correct
In November 2021, the CSRC website announced the regulatory decision taken by Shanghai regulatory bureau on China Securities Co.Ltd(601066) securities No. 1 business department. the business department was ordered to make corrections by the Shanghai regulatory bureau “because customers provided convenience for improper trading activities such as two financing and bid bypassing”.
According to the ticket, China Securities Co.Ltd(601066) the securities business department of Taiyuan Road, Xuhui District, Shanghai has the following problems : first, it failed to perform its duties prudently and fully understand the situation of investors; Second, in the process of carrying out margin trading, there is a situation of providing convenience for customers’ improper trading activities such as bypassing the bid; Third, the business department did not strictly implement the company system, the management of brokers was not in place, the employees engaged in futures intermediary business did not have futures qualification, and the comprehensive management was insufficient, which reflected the imperfect internal control of the business department.
The Shanghai regulatory bureau said that in accordance with Article 37 of the measures for the administration of the appropriateness of securities and futures investors, Article 49 of the measures for the administration of margin trading of securities companies and paragraph 1 of Article 70 of the regulations on the supervision and administration of securities companies, it decided to take regulatory measures to order the above business departments to make corrections. The business department shall complete the rectification within three months after receiving the decision and submit a written rectification report to Shanghai regulatory bureau.
