Short selling is an investment term, such as stock futures: for example, if you expect a stock to fall in the future, sell your stock when the current price is high and buy it when the price falls to a certain level. The difference is your profit. Short selling refers to selling stocks at this price when the market is expected to decline in the future, and then buying them after the decline to earn marginal profits. It is characterized by the trading behavior of selling first and then buying.
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For small and medium-sized investors, the introduction of short-selling mechanisms such as stock index futures under such conditions can only mean an increase in risk.
Short selling mechanism is a game of the strong. As a vulnerable group in the stock market, small and medium-sized investors will be extremely vulnerable if they are not protected by laws and systems.
For bankers, the short selling mechanism certainly has great risks. However, the temptation of profiteering is enormous. Under the temptation of profiteering and poor supervision, they will spread more indistinguishable false information by any means, making price manipulation more frequent.
Especially under the short-selling mechanism, the stock index and stock price will plummet frequently, and the economic recession will make some groups and individuals make huge profits, and the market will really be empty. How can small and medium-sized investors who rely on stock prices and profits have the ability to win?
Of course, the short selling mechanism has positive significance and effect on the stock market, but its negative impact is also very obvious. Especially for us, as an emerging market with short history, imperfect legal system and highly symmetrical rules and information, if it is not paid enough attention and effectively controlled, its negative impact will be enough to destroy the whole market, trigger financial turmoil and undermine stability.
Hinder the healthy development of China stock market. This is by no means alarmist. The development history of overseas securities markets has repeatedly shown the huge negative impact of short selling mechanism.
For the majority of small and medium-sized investors, the short-selling mechanism must be vigilant and vigilant; As for the regulatory authorities, we strongly urge them to be cautious when introducing short selling mechanism. In particular, relevant laws and regulations should be promulgated at the same time to strengthen supervision and effectively protect the legitimate rights and interests of small and medium-sized investors.