This has not been done in China A-share market (it can be done after the opening of securities lending business in the future), but it can be done in the futures market.

Simply put, what he means is that investors think that a stock (or futures) is not optimistic about the market outlook, judge that it will fall, and short the stock (or futures) to achieve the purpose of profit.

As far as stocks are concerned, a simple analogy explanation is that the current market price of a stock is 10 yuan, and investors think that the stock price will fall, so they integrate (borrow) 1000 shares and immediately sell 1000 shares to get 1000 yuan. When the stock falls to 8 yuan, investors will buy 65438+.

The short-selling mode of futures is also equivalent to the above example, but this process is omitted and there is no need to explicitly borrow and return. When shorting futures, you can directly buy down (short).

Take stock index futures as an example, one point equals 300 yuan. Suppose an investor buys 1 stock index futures at 3000 points, and when it falls to 2900 points, the investor sells (liquidates) this 1 stock index futures, which is equivalent to a profit of 100 points × 300 yuan = 30,000 yuan (excluding transaction costs).