Popular Finance (2)-positive repurchase

First of all, we need to declare that this article is purely a small retail with no foresight and knowledge of ignorance, for reference only.

What is the repo?
Reverse repurchase is the sale of spare money to obtain interest, corresponding to the repurchase is to borrow funds of the buyer, such as buy 204001, pay interest. Of course, borrowing money in, it must be used to obtain higher returns, whether it is used to hit new shares, buy bonds, buy stocks or even transfer out of the account to withdraw, otherwise there is no need to borrow money. The cost of the repurchase is generally not higher than 3% of the annual interest rate, as long as you borrow funds can be more than 3% or more than 5% of the proceeds, then it is worth doing.

The repurchase is open
Positive repurchase is a low-cost financing tool. But not all brokers provide this business, some brokers require every time must go to the office counter operation, does not support the online repurchase. If you want to use this feature conveniently, you also use the online positive repo function.

Market access conditions
(a) The net assets of the individual investor's securities account are not less than 500,000 yuan. Institutional investors net assets of not less than 1 million yuan, and its securities account net assets of not less than 500,000 yuan. Institutional investors should provide the latest annual balance sheet stamped with the official seal or a monthly balance sheet as a net asset from the date of application to become a professional investor in the bond market for a period not exceeding three months.
(b) The relevant business personnel of individual investors or institutional investors participate in the basic knowledge test of bond investment. After the test is completed, the investor test score of not less than 80 points, the Securities company can confirm its pass test.
(c) Investors applying to become a professional investor in the bond market should have a record of more than 10 bonds traded in the last 3 years. 1 of the commissioned sub-deal is considered as 1 transaction records.

Repurchase transaction Process

The first step: Buy Bonds (
If your securities account already has enough bonds to be used as a repo, this step can be skipped. Bonds can be bought either as corporate bonds or as Treasuries. Note that not all bonds can be re-bought, and you can look at the bond announcements to see if you can repurchase and buy back the conversion rate.

The second step: Pledge storage
Click "Sell" in the securities account and enter the pledge code. After entering the code, it will show * * quality, such as Xing Rong debt corresponding to "Xing Rong quality." What is a pledge code? For example, you have 20 hand hing Rong Debt (122694), if you want to put into storage, enter 104694,104 is all debt code prefix, 694 is the bond code after 3 bits. Similarly, the pledge Code of Dandong debt (122757) is 104757. In the number of storage to fill out their own, such as warehousing 20 lots, fill 20, click on the "Warehousing order." After the success of the order, you can see the increase in the position of the standard coupons, the standard coupon is converted, such as warehousing 100 hand a bond, if the conversion rate is 1, the standard coupon number increases 100, if the conversion rate is 0.7, the standard coupon increases 70.

Note: Pledge code prefix 090 (National debt) 104 (Corporate debt) 105 (separation of debt pure debt, corporate debt) 106 (local debt) at the beginning. Pledge Code = prefix + 3 bits after the bond code.

The third step: to buy money
Click "Buy" to enter the code. The code is the same as the reverse repo code, the difference is that the repurchase is "buy", reverse repurchase is "sell". For example: need to borrow 100,000 yuan 1 days, buy 204001, the price can choose the right price to borrow, the amount of financing to fill 100 (that is, 100 standard coupons), click on the "Financing order." After the deal, the funds within a few seconds to the account, you can use.

Shanghai Positive Repurchase code: 1 days (204001), 2 days (204002), 3 days (204003), 4 days (204004), 7 days (204007), 14 days (204014), 28 days (204028), 91 days (204091), 182 days (204182). You can choose the type of Buy to borrow as many days as you need.
Shanghai is repurchase 100,000 yuan from borrowing, the increase can only be 100,000 times, which is corresponding to the inverse repurchase. In addition, some brokers require up to 90% of the standard coupons, that is, if you borrow 900,000, you must have at least 1000 standard coupons in storage, borrowing money, and still have at least 100 standard coupons in the library, otherwise, the formation of arrears, to collect interest.

Fourth step: settlement (pay back)
As with the reverse repurchase, is the repurchase money is automatically also, where you have to ensure that the expiry of sufficient money in the account for automatic repayment. For example, Monday buy 204001, borrowed 100,000 yuan, Tuesday, before the close of the city midday, you must ensure that the account has 10W yuan to pay, the interest is also deducted at the same time, so also to prepare more interest money.

In case of forgetting to renew, there is a remedy, before 3:30 P.M. to transfer money into the Securities Fund account.

Fifth step: Pledge out the library
If you do not sell bonds, you can not do this step. If you want to sell bonds, go out of the library. Method is the opposite of storage. Click "Buy" to enter the pledge code. The "Max-out" here may be wrong, without the need to control it. As long as the number of out of the library to fill out the number of stock bonds (not the number of standard coupons), the attack "out of the library order", after successful, the position of the standard coupons will reduce the corresponding number.

Attention
Some systems do not display the number of bonds correctly after they are in storage, so you need to make a record of buying and selling bonds in order to know the true number of each bond held in your hands. This way, when the standard voucher is out of the library, we know how many hands are available for each bond.
Open is repurchase, must be timely pay back money, to form the habit of accounting, if not a good habit, any tool may enlarge your shortcomings, bring you more trouble.

This article is used only to express my often erroneous views and does not constitute any advice.

Popular Finance (2)-positive repurchase