The Sino-Singapore Jingwei client (Luo Kun) arrived at the end of the half year, and the interest rate of the national debt reverse repurchase began to soar again. After the opening today, the reverse repurchase varieties of Shanghai and Shenzhen broke out across the board, with a total of three varieties that rose more than 100%, namely R-002, R-003 and R-004. In terms of interest rates, several varieties such as GC001 and R-001 broke through 6% during the session.
Screenshot source: Zhiyuan Yihutong
The reverse repurchase of national debt is essentially a short-term loan. That is to say, individuals borrow their funds through the national debt repurchase market to obtain fixed interest income; and the repurchase party, that is, the borrower uses his own national debt as collateral to obtain this loan, and repays the principal and interest after maturity. In fact, it is a short-term loan, that is, you lend money to others and get a fixed interest; while others use the national debt as collateral and repay the principal and interest when they are due. The safety of reverse repurchase is super strong. It is generally believed that the security of reverse repurchase of national debt is equivalent to that of national debt.
What are the types of repo?
Both the Shanghai Stock Exchange and Shenzhen Stock Exchange have national debt reverse repurchase products. The letter "GC" begins with the reverse repurchase of government bonds of the Shanghai Stock Exchange, and the letter "R-" begins with the reverse repurchase of government bonds of the Shenzhen Stock Exchange. The investment threshold for the Shanghai stock market is 100,000 yuan and its integer multiples, and the threshold for the Shenzhen stock market is 1,000 yuan. Because 1 lot is equal to 1,000 yuan, the Shanghai market threshold is 100 lots, and the Shenzhen market is 1 lot.
The reverse bond repurchase products of the Shanghai Stock Exchange and Shenzhen Stock Exchange are divided into 9 varieties: 1 day, 2 days, 3 days, 4 days, 7 days, 14 days, 28 days, 91 days and 182 days.
Every long holiday and the end of the quarter, subject to financial constraints, the interest rate of the reverse repurchase of government bonds will rise significantly. Take GC001, a representative variety of pledged government bond repurchase, as an example. On September 29, 2016, due to the tightening of central bank funds and the increase in institutional “cross-section” demand, the interest rate of GC001 surged to 45.00%. In other words, if investors buy the SSE overnight reverse repurchase at the highest interest rate on September 29, they can get an annualized return of 45.00% in one day.
So how do you reverse the national debt repurchase? First, you need to have a stock account, and then prepare at least 1,000 yuan, enter the reverse repurchase code in the stock software, and then place the order.
Screenshot source: Zhiyuan Yihutong
It is worth noting that, according to the previous new regulations of the Shanghai and Shenzhen Stock Exchanges, the transaction time for the reverse repurchase of government bonds was extended by half an hour, and its closing time was extended from 15:00 to 15:30. This also means that investors can use the extended 30-minute trading time of the new rules to reasonably "borrow debt" after the stock market closes, and use their spare funds to earn income.
At the same time, after the implementation of the new regulations, shareholders' securities account funds can be seamlessly connected for 24 hours. After the daily closing, as long as the account funds are greater than 1,000 yuan, you can buy a 1-day Treasury bond for reverse repurchase, and the next trading Japanese gold proceeds will be automatically credited to the account, which will not occupy the funds and time of the stock transaction. (China-Singapore Jingwei APP)
(The opinions in this article are for reference only, and do not constitute investment advice. Investment is risky and you need to be cautious when entering the market.)
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