In the mature capital market, there is a systematic short-selling mechanism, and even short-selling funds exist, such as the well-known quantum fund, and there are also many institutions specializing in short-selling, such as the famous Muddy Water Company.
Let's talk about shorting.
1, the market fluctuates violently.
At present, the speculative atmosphere in the A-share market is still serious, such as copying concepts, chasing hot spots and hitting the board in a straight line. Operation routine? It is still very popular. Most investors have no patience to hold a blue chip, just like holding a time deposit. It will take several years to get several times the income.
They think it's too slow to make a profit. It is best to buy on the same day and limit the next day. So all kinds? Stock master? Still high-profile, so-called? VIP stock recommendation group? Even if it is a poor disguise of a liar, there will still be people who are willing to choose to believe it.
If we let go of the short-selling mechanism, we will go to stocks according to this mentality and covet profits? Some investors will suddenly see more collectively, and then suddenly turn to focus, leading to greater market volatility, extreme market instability and even systemic risks.
2. Is the market easy? Malicious shorting?
Most retail investors are vacillating? Wall grass? Wherever the news blows, their money will follow. For some people? No intention? As far as people are concerned, it is easy to take advantage of this herd mentality of retail investors, thus inducing investors to maliciously short, which has a great impact and influence on the stability of the market.
So is the stock market? A barometer of the economy? Whether it is true or not, it is so defined in name. Due to the popularity of short-selling mechanism, the stock market is easily overwhelmed by large funds, and the market continues to slump. Entrepreneurs and foreign investors will also begin to lack confidence in such a market, and the speed of investment and expansion will also slow down. It will pose a huge challenge to the smooth operation of economic fundamentals, which is the result that no one wants to see.