Short selling system enables both long and short parties to enter the market through transactions, which is conducive to balancing unilateral transactions, correcting overvaluation and curbing asset bubbles. In other words, it is the short selling mechanism that improves the pricing efficiency of the market.

Empirical evidence shows that the ban on short selling has damaged market efficiency to some extent. Xiang Shuai and his collaborators also specially studied the relationship between stock index futures and market liquidity after the A-share stock market crash. They also found that the restricted stock index futures actually had a significant negative impact on market liquidity.

Thoughts brought by this course:

Any system has its drawbacks, especially the financial system. The financial system is gradually improved through trial and error.

The same is true of people's growth: trial and error, continuous growth, and gradually become a better self.