Since overseas hedge funds cannot directly enter the A-share market, only index futures are linked to China stocks. Before the delivery date, overseas hedge funds shorted this index on the one hand and QFII on the other. On the delivery day, these stocks sold to QFII were sold again, which suppressed the domestic A-share index and profited from the FTSE Xinhua Index. Whether there will be a big drop depends on whether the position exposure on the delivery date is large. If it is large, it means that there are a lot of funds betting on the fluctuation of the index on this day, so there is a great possibility of a big drop. or vice versa, Dallas to the auditorium

To put it simply, it is to throw stocks into the market in August near the delivery month, which is to smash the market. At the same time, sell A50 index futures in SGX. In this way, shorting futures and stock spot market at the same time, although the stock market will cause its own losses, but because futures are leveraged transactions, once the stock index falls, its gains in futures will far outweigh the losses of stocks. For example, if the same funds are used to short the stock market and A50, and the stock market and A50 both fall by 10%, then the funds shorting the stock market will only lose 10%, but the funds shorting A50 will gain 100% (about 10%) because of leverage. Combine the two markets and finally make a profit of 90%. Such huge profits will surely attract international hot money to stage the delivery day curse frequently.

Introduction to A50:

Xinhua FTSE A50 Index is a stock index compiled by Xinhua FTSE Index Co., Ltd., which consists of 50 leading stocks with the largest market value in China A-share market. Listed on the Singapore Stock Exchange, it is the only index that international investment institutions can directly invest overseas with China stocks as the target. At the same time, the stock index futures based on this index are traded on the Singapore Stock Exchange.

Xinhua FTSE A50 index futures are delivered on the penultimate working day of March, June, September, 65438+February and the extended two months after these months, that is to say, February, March, May, June, August, September, 1 1 and 65438+February every year.