Normal short selling is a common operation mode in the stock futures market: the specific operation is that the futures market is expected to have a downward trend, and the operator sells his chips at the market price and buys them after the stock futures fall to earn the intermediate price difference.

However, malicious shorting is premeditated to disrupt the market and seek illegal interests. Transactions are usually accompanied by the following obvious characteristics: selling in large quantities in a short period of time, joining hands with a number of institutions to issue trading instructions that are seriously inconsistent with market transactions, and accompanied by the act of fabricating and spreading false information.

Malicious short selling belongs to market manipulation.

Article 77 of the Securities Law prohibits anyone from manipulating the securities market by the following means:

(1) Manipulating the trading price or trading volume of securities individually or in collusion by pooling capital advantages, holding shares advantages or using information advantages for joint or continuous trading;

(2) colluding with others to conduct securities trading with each other at the time, price and manner agreed in advance, thus affecting the price or volume of securities trading;

(3) conducting securities transactions between accounts under its actual control, which affects the price or volume of securities transactions.

(4) manipulating the securities market by other means.