The so-called short-selling mechanism, simply put, refers to futures trading based on stock index futures and stock futures. According to the trading system, investors can sell in advance without actually holding the stock. , and then buy it at an agreed period in the future. If the stock price shows a downward trend, investors can profit by selling first and buying later. Therefore, once the short-selling mechanism is implemented, investors can directly profit when the stock market falls, which is fundamentally different from the current situation where profits can only be made when the stock market rises.

The short-selling mechanism is to borrow other people's stocks in advance to sell them when it is judged that the market will fall at a high level, and then buy them back at a low level and return them to the borrower to close the position to make a profit. It is different from the current stock buying method. Profiting through rising prices is a reverse operation. Since profits are made through falling prices, a large amount of funds will be attracted to short positions in a bear market. The short selling here is different from what we usually call "short selling". Our current short selling is actually to wait and see. As the stock falls, transactions become less and less active, which is harmful to the market. The introduction of the short selling mechanism Because of the possibility of profit from short selling, a large number of OTC funds can be attracted to enter the market in a falling market. Since investors have different views on the future market direction, some are long, some are short, some are short, and some are long, so it will inevitably cause The amplification of trading volume is very beneficial to active stock market trading.

The introduction of the short-selling mechanism is a great boon to securities companies. As we all know, securities companies’ profits come from three major parts: brokerage (commission collection), self-operation (self-owned funds to buy and sell stocks), investment banking (securities issuance and Underwriting), because short selling can increase the activity of transactions, which is very helpful to increase the brokerage business volume of securities companies. However, the current actual situation is that in the absence of a hedging mechanism, large funds have only one option in a bear market. Staying on the sidelines, this makes trading volume tend to decrease.

At the same time, the advantages of securities firms also make it possible for them to participate in short-selling operations and obtain more profits from the decline than before. Securities firms are an important stabilizing force in the securities market. Regardless of whether it is bullish or bearish, securities firms must make money in order to maintain Sales department expenses,