And it is a margin leveraged transaction. Before CICC raised the margin of Shanghai and Shenzhen 300 stock index futures, its leverage ratio was close to 10 times. In addition, institutional investors' own leverage channels will amplify the short-selling ability of stock index futures. Stock index futures are related to the trend of the stock market, and the sharp shorting of stock indexes will inevitably affect investors' attitude towards the stock market, resulting in pessimism and the stock market falling.
Stock index futures are not suitable for all investors because of their high threshold and high risk. This is its most basic shortcoming.
In addition, institutions can also make money. With margin financing and securities lending, institutions will be more unscrupulous in the future. Institutions will not sit still, but play games with each other, and market turmoil will intensify, and retail investors caught in the middle will only die even worse.