2. Short selling mechanism is to borrow other people's stocks in advance, sell them when it is judged that the market is falling at a high level, then buy them back at a low level and return them to the borrower for liquidation, thus making a profit. Making a profit by rising is the opposite of buying stocks now. Because it makes a profit by falling, it will attract a lot of money to short in a bear market.
The short selling here is different from what we usually call "short selling". Our short selling now is actually to leave the market and wait and see. The decline of stocks and the less active trading are harmful to the market. The introduction of short selling mechanism can attract a lot of off-exchange funds in the falling market because of the possibility of short selling. Because investors have different views on the market outlook, some people will be long, some will be short, some will be long, and some will be long, so it will inevitably lead to.
4. Stock index futures can operate in both directions, which is no different from general futures. The risk degree of short selling mechanism is different from that of stock index futures, which is determined by its margin ratio. The short-selling mechanism is generally 100% margin, which is the same as the current stock trading, while stock index futures are futures varieties, and the margin cannot be 100%. For example, the current soybean futures is 5%, which means that as long as there is a book loss of 5%, your investment will evaporate. Therefore, the usual practice abroad is to launch short selling first and then stock index futures to ensure that investors are familiar with this trading variety and operation method.
Extended data:
Domestic reasons
mechanism
The first reason is that the effective establishment and function of short selling mechanism is based on the formation and effective function of market expectation mechanism. Without a reasonable and effective expectation mechanism, the establishment of short-selling mechanism may destroy or disrupt the normal and effective operation of the market. To form an effective expectation mechanism, we need to have a series of basic guarantee conditions at the existing institutional level. In particular, institutional constraints need to become constants rather than variables in market operation, rather than bigger variables and frequent variables. At present, the institutional level of China stock market is a huge variable.
This has added great uncertainty to the market. In the process of institutional adjustment, any minor institutional adjustment can not but affect the trend of stock price. It is very dangerous to establish a short-selling mechanism, because it will make investors lack institutional guarantee. To protect the interests of investors, the current problem is not to establish a short-selling mechanism, but to promote the overall system reform and complete it as soon as possible. Otherwise, in the name of protecting the interests of investors, the short-selling mechanism will only greatly harm the interests of investors.
Market clarity
The second reason is that the establishment of short selling mechanism must be based on the transparency of the market. At present, the information disclosure of China stock market is only "grey", and there are a lot of insider trading and related transactions, which involve many things that investors can't participate in and decide. There is no voting mechanism for tradable shareholders, and profit manipulation and asset restructuring of listed companies have almost nothing to do with tradable shareholders. These are all factors that have a great influence on the stock price trend.
In this case, the establishment of short-selling mechanism will make circulation shareholders at a loss. In the case of opaque information disclosure, the short-selling mechanism can certainly not protect the interests of investors.
Stable trading mechanism
The third reason is that if the short selling mechanism becomes a normal and stable trading system, it must be able to prevent market manipulation or stock price manipulation to a considerable extent. However, the institutional constraints of China stock market on this kind of market manipulation are far from perfect. The aspect, level and intensity of restrictions are far from in place. This provides institutional gap and space for market participants, especially institutional investors, to jointly or independently manipulate the market or manipulate the stock price, thus making the market trend and stock price trend deviate from their intrinsic value or even seriously deviate.
If this problem is not solved, the establishment of short-selling mechanism will have a huge negative impact on the market. The result is not only not conducive to the protection of circulating shareholders, especially small and medium-sized investors, but also will cause huge institutional damage and interest damage to them.
Baidu Encyclopedia: Short Selling Mechanism