Short selling is a way of operation in the stock and futures markets. In contrast to bulls, in theory, it is to borrow first, then sell, then buy and then return. Short selling refers to selling borrowed stocks at the current price in the expectation of future market decline, and then buying and returning them after the market decline in order to obtain the difference profit. Its trading behavior is characterized by selling first and then buying. In fact, it is a bit like the credit transaction model in business. This model can profit in the wave band of falling prices, that is, borrowing goods at a high level and selling them, and then buying and returning them after falling.

At present, the bond market in China can be shorted through margin financing and securities lending, but there are credit restrictions. Generally speaking, you need to open an account in a securities company for more than two years before you can do margin trading. China bond market does not allow short selling of individual bond varieties, and there is no short selling mechanism like stocks. However, using China bond futures, we can curve short the bond market. However, because treasury bond futures are often the expectation of future risk-free interest rates, this will be affected by many factors, unlike corporate bonds and corporate bonds in individual bonds, when there is a big expectation of default, the income from shorting such bonds will be great.