What does it mean for foreign investors to short the stock market? The financial manager told you.
Short selling is a way of operation in the stock and futures markets. This is the opposite of doing more. Theoretically, it is to borrow goods to sell first and then buy them back. Generally, the regular short-selling market has a neutral warehouse to provide a platform for borrowing goods. 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. So buying is still low, selling is still high, but the operating procedures are reversed.
As the name implies, the so-called foreign short-selling of the stock market means short-selling the China stock market through the intervention of overseas funds. Foreign short-selling stock markets can be mainly divided into the following categories:
1. Short the stock of a listed company in Chinese mainland through Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect, and short the stock of a listed company in Chinese mainland by creating public opinion.
2. When China stock market rises, it is very difficult to short China stock market overseas. Once the China stock market rises and goes short, the China stock market will capsize. What should I do? The author predicts that the overseas launch of major short selling on the China stock market at the time of the correction of China stock market will lead to the risk of enlarging the China stock market and the phenomenon of killing more. This is the phenomenon of falling head. Historically, we found that the stock price fell all the way from 40 yuan to 5 yuan, then rose to 10 yuan to escape from the top, then fell all the way to 1.5 yuan, and then rose to 5 yuan for profit.
3. Be wary of overseas fishing to short stocks, such as shorting the loan of a stock first, and then issuing a report on shorting the stock through the organization, so the stock price plummeted, and the short sellers bought the same number of stocks after the plunge and returned them. Of course, you can also buy stocks at the bottom and sell them when they rise sharply.
4. Because the stock index futures have changed from the original weather vane to the current lag effect, if we further short the stock index futures when the stock index plummets, it will increase the downside of the stock index and achieve the purpose of shorting the stock index. So, has the CSRC done a good job in supervising these demons?
Due to the gratifying increase of a large number of stock markets, the price of H shares of the same stock is lower than that of mainland A shares. However, when there is also a correction in the mainland stock market, some lawless elements will take advantage of the panic social psychology to short their H shares and win the chance to bet on their A prices.
To sum up, there are many ways to short the mainland stock market and overseas stocks. It is hoped that the CSRC will upgrade the scope, capacity and countermeasures of supervision in time. It is a feasible way to limit the occurrence of short trading through quota trading.