In margin trading, financing balance refers to the total amount of outstanding financing, and the calculation formula is: financing balance of the day = financing balance of the previous day-repayment amount of the day+financing purchase amount of the day. Generally speaking, financing balance refers to the amount of financing brought by bank financing (loans, bills, discounts, etc.). ) to the enterprise. When the financing balance or margin of a single underlying security reaches 25% of the market value of the listed securities, the stock exchange may suspend its financing purchase or short selling on the next trading day and make an announcement to the market. When it falls below 20%, it will resume trading on the next trading day. Financing is the most basic function of financial market. Financial market is a multi-channel, multi-form, free and flexible financing and investment place. Through this function, you can effectively raise and adjust funds. In fund-raising activities, there is no distinction between nationality and region. The existence of financial markets enables the smooth transfer of funds between regions and countries. Loans issued by the central bank as the lender of last resort to financial institutions are called refinancing.
Re-lending is an important source of funds for commercial banks besides deposits. Re-lending is an important means for the central bank to control the money supply. Foreign refinancing is generally a mortgage loan, which is usually used to supplement the shortage of statutory reserves and temporary adjustment of assets, and cannot be used for lending and securities investment. China's refinancing is mainly credit loans, which are divided into basic loans, annual planned loans and temporary loans. Rediscussion, also known as "rediscount", refers to the behavior of financial institutions to discount to the central bank to finance funds in order to meet short-term capital needs after discounting and buying unexpired securities (such as time bills and bank acceptance bills). Further discussion has the function of structural adjustment and borrowing cost, and the interest rate is generally lower than that of commercial banks' refinancing. Open market business is a common monetary policy tool for central banks all over the world. On the one hand, the open market provides a place for the central bank to adjust the money supply, on the other hand, it also provides the possibility for financial institutions to exchange funds by selling their qualified securities such as treasury bills.