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What are the disadvantages of stock index futures?
The introduction of China's stock index futures not only failed to maintain stability, but also played an accelerator role.

To sum up, there are four major institutional defects in China's stock index futures:

1, seriously short. The introduction of stock index futures is expected to change the previous unilateral market, that is, reduce and avoid unilateral rise. However, because there are no certain restrictions on the short-selling mechanism, this short-selling mechanism will severely suppress the stock spot market in some cases (such as bad), especially shorting the Shanghai and Shenzhen 300 targets, which can produce a herd effect, so that the majority of investors can reduce their positions and cut their meat with the sharp decline of the stock index, so that domestic and foreign institutions can take the opportunity to bargain-hunt, and the fishermen will benefit.

2. Serious violations. Stock index futures trading is closely related to stock market trading, which makes the irregularities in stock index futures trading often involve the stock market, with wide influence and more complicated means. If this phenomenon is not stopped in time, there will be serious unfair transactions. Therefore, in order to maintain fair trade between the spot market and the stock index futures market, foreign stock index futures markets have taken many measures to prevent market manipulation between the two markets. These measures include: first, strengthening market supervision, early detection of various trading behaviors and trading conditions that may distort market prices, and taking various measures against these trading behaviors or trading conditions to ensure the realization of various functions of the market. The second is to strengthen the information sharing and coordinated management between the stock market and the stock index futures market, and also to standardize the settlement system. However, China's stock index futures have not done these two points well, so it is inevitable that they are not standardized.

3. Serious injustice. Mainly refers to the current trading system. At present, both Shanghai Stock Exchange and Shenzhen Stock Exchange adopt the trading mode of "T+ 1". That is, what you bought on the same day will not be sold until the next trading day. However, China's stock index futures implement the "T+0" trading system. In this way, institutions and stock index futures investors will take advantage of this loophole to seriously short the theme of the stock market, while stock market investors will watch others frantically suppress, unable to ship, and suffer serious losses. China's stock index futures have been launched less than 20 days, and everyone has learned this unfairness.

4. Serious speculation. Stock index futures trading includes speculation and hedging, of which the latter is the main trading method. However, due to the above three problems, the speculation of stock index futures in China is very serious at present. Some stock index futures investors can earn hundreds of thousands of yuan with a small amount of investment in one day through leverage. So far, no hedging has been found. Why? Because investors at home and abroad have made good use of all kinds of bad news to short, and gained a lot of profits, at least in China, there was no mistake. Who wants to hedge?

In short, there are four major institutional defects in stock index futures, which not only make investors suffer greatly, but also make China's corporate governance structure, especially the incentive mechanism, invalid, because those large-cap stocks with good performance have not appreciated in the long run, but have shrunk. Who wants to care about the long-term development and value of enterprises?