1, a large number of stocks cannot participate in securities lending, and the number of stocks eligible to participate in securities lending in China stock market is very limited;

2. Many times, the securities in the hands of brokers are insufficient. Even if investors have enough stocks to borrow securities, brokers may not necessarily have the source of securities;

3. Many securities sources are provided to institutional investors and investors with large capital, which is very difficult for retail investors.

Short selling by securities lending is actually a way to short stocks. Short selling by securities lending in a broad sense refers to a way to make profits by taking advantage of opportunities when a stock or the whole stock market is bearish. -Generally including short selling, short selling of stock index futures contracts and options trading. In a narrow sense, margin financing and securities lending refers to the mechanism that investors make profits by short selling through margin financing and securities lending when stocks fall. The general process is that investors are not optimistic about the stock, pay the deposit, sell the stock, and then wait until the stock falls to-positioning, and put it back into the warehouse to get the difference income.

Short selling securities is borrowing securities to sell and then returning them in the form of securities. Securities companies lend securities to customers for sale, and customers return the same kind and quantity of securities at maturity and pay interest. Customers selling securities from securities companies are called "short selling".

Let's assume that the price of a stock is 40 yuan per share. When a stock is short-sold, its share price drops to 65,438+00 yuan. Because it is short, the biggest potential gain is that when the stock price falls to 10 yuan, it makes a net profit on 30 yuan. (Borrow a stock from a brokerage firm, sell it at the price of 40 yuan, and then buy it back to the brokerage firm at the price of 10 yuan. On the other hand, since there is no upper limit for the rise of the stock price, you may have to buy back the stock to the broker at the price of 100 yuan and 1000 yuan tomorrow, so the potential loss is unlimited. It can be seen that the risk of shorting is lower, much higher than that of ordinary buying stocks.

When shorting through margin financing and securities lending, in addition to paying certain commission fees and stamp duty, you also need to pay certain interest and securities lending fees to the securities company, which will increase the cost. At the same time, you will also face the following risks: 1 The risk of forced liquidation. When your stock forecast is wrong, that is, after the stock rises and touches the liquidation line, the securities company will carry out compulsory liquidation without additional funds and margin.

2. Risk of early settlement of margin financing and securities lending transactions If the comprehensive securities are transferred out of the scope of the underlying securities, the underlying securities are suspended or the listing is terminated, investors may face the risk of early settlement of margin financing and securities lending transactions by securities companies.