Malicious short selling: refers to manipulating the market through false trading, self-buying and self-selling, which eventually leads to chaos in the financial market and completely deviates from the original intention of perfecting the market.

First, the meaning of malicious short:

Malicious short selling is a daily term, not a legal term. Specifically, it is understood as a market manipulation characterized by manufacturing, exaggerating and expanding short expectations, and broadly speaking, it can also include the fabrication and dissemination of false information characterized by this.

In essence, the long-short balance between speculators and buyers is helpful to help the market find a reasonable price, eliminate price distortion and ensure the liquidity of the securities market. Short selling itself is not a constituent element of "malicious short selling". Malicious short-selling transactions are usually accompanied by the following obvious characteristics: a large number of short-term sales, joint efforts with a number of institutions, issuing trading instructions that are seriously inconsistent with market transactions, and accompanied by fabrication and dissemination of false information.

Second, the punishment for malicious shorting:

The main regulatory law of China stock market is the Securities Law and its supporting regulations, while the main regulatory law of stock index futures market is the Regulations on the Administration of Futures Trading (hereinafter referred to as the Regulations) and its supporting regulations. Generally speaking, it belongs to different departmental laws.

Article 77 of the Securities Law and Article 7 1 of the Regulations respectively explain several forms of market manipulation, including, alone or through collusion, concentrating capital advantages, holding stock advantages or using information advantages to jointly or continuously buy and sell, trading with oneself and a free account, and so on.

Violators will be subject to relevant administrative penalties, confiscate their illegal income, and impose a fine of more than one time and less than five times their illegal income; If there is no illegal income or the illegal income is less than 300,000 yuan, a fine of more than100000 and less than1000000 will be imposed. At the same time, it can be announced that the relevant personnel are prohibited from entering the securities market or the futures market for life.

Worse, it may violate Article 182 of the Criminal Law, namely "the crime of manipulating the securities and futures market":

According to the regulations, whoever manipulates the securities and futures market in any of the following circumstances, if the circumstances are serious, shall be sentenced to fixed-term imprisonment of not more than five years or criminal detention, and shall also or only be fined; If the circumstances are especially serious, he shall be sentenced to fixed-term imprisonment of not less than five years but not more than ten years, and shall also be fined:

(1) Individually or in collusion, concentrating capital advantages, holding shares or positions, or using information advantages to jointly or continuously buy and sell, and manipulating the trading price or trading volume of securities and futures;

(2) colluding with others to trade securities and futures with each other at the time, price and manner agreed in advance, which affects the trading price or volume of securities and futures;

(3) Trading securities between accounts under its actual control, or buying and selling futures contracts on its own, which affects the trading price or volume of securities and futures.