The threshold has dropped by 99%! The trading rules of this species on the Shanghai Stock Exchange have changed, and 1,000 yuan can also "smash wool"! see how-to guide
On May 16, a series of new regulations on bond trading on the Shanghai and Shenzhen Stock Exchanges were officially implemented. Among them, closely related to ordinary investors is the reverse repurchase of government bonds on the Shanghai Stock Exchange. The threshold was lowered from 100,000 yuan to 1,000 yuan. The repurchase threshold is the same.
The thresholds for reverse repurchase of government bonds in the two cities are the same
On May 16, the new regulations on reverse repurchase of bonds were implemented.
According to the new regulations, the name of the bond pledged repurchase is adjusted to the general pledged bond repurchase.
In the initial stage of the general pledged repurchase transaction of bonds, only matching transactions will be adopted, and the implementation time of other transaction methods will be notified by the Shanghai Stock Exchange.
If the general pledged repurchase of bonds adopts the method of matching transaction and negotiated transaction, the single declaration quantity of the transaction shall be the denomination of 1,000 yuan or an integer multiple thereof.
Compared with the previous ones, the threshold for reverse repurchase of government bonds (which belongs to the general pledged repurchase of bonds in the new regulations) has been greatly lowered in the Shanghai market. Like the Shenzhen market, it is 1,000 yuan or an integer multiple.
The original regulation was 100,000 yuan in Shanghai and 1,000 in Shenzhen.
In addition, the minimum change unit of the price declared by the Shanghai Stock Exchange is 0.005, and the minimum change unit of the price declared by the Shenzhen Stock Exchange has changed from 0.001 to 0.005.
According to the new regulations, in the initial stage of the general pledged repurchase transaction of bonds, only the matching transaction method will be adopted, and the implementation time of other transaction methods will be notified by the Shanghai Stock Exchange. If the matching transaction and negotiated transaction methods are adopted, the single declaration quantity of the transaction shall be 1,000 yuan in denomination or its integer multiples.
On January 27, the Shanghai and Shenzhen Stock Exchanges released bond trading rules and three supporting guidelines respectively. The new rules include bond trading participant system, bond trading market maker system, bond trading mechanism, bond trading declaration parameters, and bond trading price management. Relevant optimization arrangements have been made in terms of methods and other aspects, and the supervision and risk management of bond transactions have been further strengthened. The new regulations were originally scheduled to be implemented on April 25, 2022.
According to the new regulations, the number of applications for reverse repurchase in the Shanghai stock market has been changed from the original 100,000 purchase to a minimum purchase of 1,000 yuan or an integer multiple, and the minimum change unit of the application price is 0.005; the number of applications for reverse repurchase in Shenzhen is still the original 1,000 The minimum change unit of the declared price is changed from 0.001 to 0.005.
On April 20, the Shenzhen Stock Exchange announced that in order to meet the technical preparation needs of all market players, the "Shenzhen Stock Exchange Bond Trading Rules" and "Shenzhen Stock Exchange Bond Trading Business Guidelines" originally scheduled to be implemented on April 25, 2022. No. 1 - Management of Bond Trading Participants, "Shenzhen Stock Exchange Bond Trading Business Guidelines No. 2 - Bond General Pledge Repurchase", "Shenzhen Stock Exchange Bond Trading Business Guidelines No. 3 - Bond Market Making" adjustment It will take effect from May 16, 2022.
On April 22, the Shanghai Stock Exchange also issued a similar announcement, adjusting the implementation date to May 16.
The new regulations mainly include four aspects:
First, establish and improve the bond trading participant system, and continuously expand the types of institutions participating in the bond market.
The second is to optimize the bond trading mechanism, including optimizing the existing trading method, introducing a bidding transaction mechanism, extending the trading time, adjusting the number of bond trading declarations and price control methods, etc., so that the bond trading mechanism is more in line with the basic rules of bond trading and bond investors’ trading habits. .
The third is to establish a bond market maker mechanism, improve the price discovery function of the bond market of the Shanghai Stock Exchange, and improve the liquidity of various bond varieties.
The fourth is to strengthen the supervision and risk management of bond transactions, and improve the self-discipline management of participants and transaction behaviors and the mechanism for handling abnormal transactions.
Operational Guidelines for Reverse Repurchase of Treasury Bonds
In recent years, with the advantages of good security, convenient operation and high liquidity, the reverse repurchase of government bonds has entered the vision of ordinary investors, especially at the end of the month, the end of the quarter, the end of the year, and the eve of long holidays. The high yield of reverse repurchase has become a "standard" for some investors.
Under the new regulations, the full name of the reverse repurchase of treasury bonds is "bond-type pledged reverse repurchase", which is essentially a short-term loan, that is, short-term capital lending by both parties using bonds as collateral.
That is to say, investors lend their funds through the treasury bond repurchase market to obtain fixed interest income; while the repurchase party, that is, the borrower, uses his treasury bonds as collateral to obtain the loan, and repays the principal after maturity Pay interest.
Here are answers to some frequently asked questions:
A. If you want to do reverse bond repurchase, should you choose Shanghai or Shenzhen stock?
After the adjustment of the new regulations, the thresholds for reverse repurchase in Shanghai and Shenzhen are the same, and there is no longer a “local version” and a “civilian version”. The threshold is 1,000 yuan.
Judging from the data after the first day of the implementation of the new regulations on May 16, the interest rates of reverse repurchase products of the same term in the two cities are still different, but the gap is not large.
B. How to choose the reverse repurchase period?
There are 9 types of reverse repurchase terms of 1 day, 2 days, 3 days, 4 days, 7 days, 14 days, 28 days, 91 days and 182 days in the Shanghai and Shenzhen markets, with a total of 18 varieties in the two markets.
Make a comprehensive selection according to your own payment time requirements and the size of the rate of return.
C. How to place an order?
9:30-11:30 and 13:00-15:30 of each trading day are the time for reverse repurchase of government bonds.
When placing an order, directly choose to sell (remember it is to sell, not to buy), and the price can be selected from the real-time market price.
Now the market software of securities companies has become more user-friendly, and many of them have a special area for reverse repurchase of treasury bonds on the trading interface, which can also be operated by entering the corresponding page.
In addition, most brokerage software will prompt the operation of a certain variety on the day, how many days it will take up funds, and how many days of interest will be harvested accordingly.
D. When will the payment be returned?
After the entrusted transaction, according to the time limit of the product at the time of the entrusted transaction, the payment will be automatically collected at maturity, and there is no need for reverse transaction.
It is worth noting that the funds due on the day are available but cannot be withdrawn. If there is a demand for new payment on the same day, you can use the returned funds to make payments on the due day.
E. Is there an "optimal" order time period in a day?
There is usually no so-called "optimal" order placement period, and the highest intraday yield may appear in the morning or in the afternoon. According to past experience, there are many cases where the yield of reverse repurchase in late trading will fall off a cliff from the high point. , so you still need to avoid placing orders at the end of the day.
F. How to calculate the rate of return?
For example, if I place an order to sell 204014 (14-day treasury bond repurchase) at 3.40, it means that I lend money to others at an annualized interest rate of 3.40% for 14 days. The rise and fall of 204014 within these 14 days has nothing to do with me, my annualized The yield was locked at 3.4% at the moment the pending order was filled.
So, how is this income calculated?
In the above example, if you invest 100,000 yuan, the income = 100,000 yuan × 3.40% ÷ 365 days × 14 days = 130.41 yuan.
For investors who are not particularly strong in capital, the reverse repurchase of treasury bonds is suitable for operating when the holiday time is relatively long or the income is particularly high, and the income is usually not large.
In addition to long holidays, the reverse repurchase of government bonds can also be used in normal operations. For example, when the stock market closed this afternoon, if you haven't picked a stock, and you don't want the money in your account to be wasted, you can trade a one-day reverse repurchase. The money can be used at the opening of the day, and it does not affect the transaction of the next day.
G. Is the handling fee expensive?
The transaction fee for the reverse repurchase of treasury bonds is calculated according to the variety and amount, and there is no minimum limit of 5 yuan. For example, the handling fee for a one-day reverse repurchase is 0.001%, that is, 1 yuan per 100,000 yuan per day, calculated on a daily basis The interest is capped at 30 yuan, and basically the income can be much higher than the transaction commission.
H. Is there any risk?
Basically no risk.
Looking at the market chart, the volatility of the reverse repurchase of government bonds seems to be very large, often 30% or 40%. For example, the annualized interest rate was 2% yesterday and 3% today. If it drops to 2% tomorrow, it will drop by 33%. Don't worry about this. As long as the interest rate is not negative, you will not lose money. You will earn interest back at 2% and 3%, but the interest rate is different.
I. What types of reverse repurchase are available on the Shanghai and Shenzhen Stock Exchanges?
At present, if investors want to carry out reverse repurchase, they can do 204** in Shanghai stock market and 1318** in Shenzhen treasury bond repurchase, with a total of 18 varieties.
SSE repurchase varieties:
1-day treasury bond repurchase (GC001, code 204001)
2-day treasury bond repurchase (GC002, code 204002)
3-day treasury bond repurchase (GC003, code 204003)
4-day treasury bond repurchase (GC004, code 204004)
7-day treasury bond repurchase (GC007, code 204007)
14-day treasury bond repurchase (GC014, code 204014)
28-day treasury bond repurchase (GC028, code 204028)
91-day treasury bond repurchase (GC091, code 204091)
182-day treasury bond repurchase (GC182, code 204182)
Shenzhen Stock Exchange repurchase varieties:
1-day treasury bond repurchase (R-001 code 131810)
2-day treasury bond repurchase (R-002 code 131811)
3-day treasury bond repurchase (R-003 code 131800)
4-day treasury bond repurchase (R-004 code 131809)
7-day treasury bond repurchase (R-007 code 131801)
14-day treasury bond repurchase (R-014 code 131802)
28-day treasury bond repurchase (R-028 code 131803)
91-day treasury bond repurchase (R-091 code 131805)
182-day treasury bond repurchase (R-182 code 131806)