Many parties denied shorting Chinese financial giants and clarified the relationship

Global Times comprehensively reported that "the sell-off of Chinese stocks has nothing to do with the United States." On the 10th, the British Broadcasting Corporation quoted the U.S. Treasury Department responsible for Asia Deputy Assistant Secretary for Foreign Affairs Robert Dorner was quoted as the headline of the report. According to reports, Dorner denied accusations that U.S. investors were shorting the Chinese stock market. He attended an event at the Center for Strategic and International Studies, a Washington think tank, and said: "The role played by foreign investors in the Chinese stock market is very small. From this perspective "The people who are selling Chinese stocks are within China," he said, quoting U.S. Treasury Secretary Jacob Lew as saying that China's financial markets, including the stock market, have little integration with the rest of the world.

It is not just the U.S. government that is eager to distance itself from "shorting the Chinese stock market." According to Taiwan's "China Times" report on the 10th, the Ministry of Public Security of the mainland has unprecedentedly investigated and punished malicious short sellers. Rogers, an international financial giant who was once considered "the main force of mainland stock short sellers", suddenly changed his tune to "stand with the mainland national team" and emphasized that he did not sell Buy any mainland stock, "and start buying more Chinese stocks from the 8th." He also predicted that mainland China's stock market would "hit a certain bottom and then gradually rise." The report also said that the four major international investment banks including Goldman Sachs, HSBC, Citigroup and UBS, which were originally bearish on the mainland stock market, also sang bullish on the mainland stock market.

Before these people denied short-selling the Chinese stock market, a large number of jokes about "overseas financial anti-China forces" causing trouble were circulating on the Chinese Internet. The British "Financial Times" interviewed a Chinese stock investor on the 10th. When asked about the reasons for the stock market crash, the stock investor said that "according to hearsay", this was all "the fault of foreign forces. They made money" Once you get the money, you will immediately withdraw your investment.”

The unusual plunge in the stock market in the past few days has heightened concerns about the power of short-selling. Liu Jipeng, Chang Qing and other well-known domestic capital market experts have jointly expressed their views on where this powerful short-selling force comes from. They believe that this force is well-funded, experienced and well-prepared. It is very familiar with the quantitative analysis of public and private financing leverage capital allocation. It uses the superimposed effect of investors' liquidation at different stages to advance layer by layer and expand the results, especially when using Judging from the short-selling methods of a series of financial derivatives portfolios such as CSI 500 stock index futures and ETFs, they are by no means ordinary stragglers, but a professional force working together with experienced warriors. The British "Financial Times" also published an article saying that Beijing has encountered unprecedented opponents in the stock market.

Is anyone overseas shorting the Chinese stock market? The answer is yes. The Wall Street Journal reported on the 10th that Chanos, the short-seller and head of New York hedge fund Knicks United Fund, and other people who are short-sellers on China have increasingly become the focus of market attention, not only because of the potential profits they may gain, And because they are currently being targeted by the Chinese government. Chinese police will investigate malicious short selling of stocks, Chinese media reported on Thursday.

The "Wall Street Journal" said that bearish investors sell the borrowed shares, believing that they can buy them back from the market at a lower price, thereby earning the difference. But many self-proclaimed short sellers say they are cautious about shorting Chinese investments. Some say it's difficult to establish a large short position in China right now. The report also said that Chanos has been betting on the decline of China's stock market for almost five years. During this period, China's stock market, like many markets around the world, has experienced steady gains. Such market conditions have made life difficult for Chanos, whose assets under management have shrunk to about $3 billion from about $6 billion a few years ago.

“Overseas capital has no energy and no opportunity to short China,” Li Xunlei, chief economist of Haitong Securities, told the Global Times. He believes that mainland China's stock market is a relatively closed market, and overseas funds account for about 2% of the entire market. "I think this proportion is negligible. In the Taiwan market and South Korea market, overseas funds account for 30%." So, our Chinese capital market can almost be regarded as a closed market. Now the RMB is not fully internationalized, and it is impossible for foreign funds to enter China to buy stocks on a large scale."

Chief of Orient Securities. Economist Shao Yu told the Global Times on the 10th that domestic and overseas funds are all seeking profits, "but this is a conspiracy, not a conspiracy." The reason why there is such an argument about short selling by overseas forces in the market, Shao Yu It is believed that conspiracy theories cater more to some people’s curiosity about “story and plot”, and such views are more likely to become popular.