At present, the main source of hot money is private placement, and there are also some short-term funds of listed companies. At present, a few funds are also fast-forward and fast-out, and there are also a lot of hot money coming in abroad. They mainly play ultra-short-term games.

Most of the stocks played by hot money are not higher than those in 20 yuan, and most of them are around 10 yuan, with a moderate circulating market value of around 5 billion. Hot money loves to play with themes. As long as there is a theme that can be speculated on that day, it will rise sharply in the first time, and retail investors will only chase after it. Such stocks are generally the first day, and many times the next day is still low, and hot money will be sold to you. Every time the hot money will earn very little, but the hot money itself is safe and earns many times. Small-cap stocks don't play with hot money, because they can't eat much when they buy, and it's not easy to sell. Large-cap stocks are generally not played, and large-cap stocks need more funds to pull.

The role of hot money in the stock market;

1, pioneer of asset value:

The role of hot money in the stock market is enormous. They exist in the capital markets of all countries, and they are pioneers in discovering the value of assets. Often when the value of commodities is underestimated, when most investors are extremely scared, hot money will resolutely intervene in these varieties. Profit by raising the price in others' suspicious eyes, and profit after others perceive its value. Their style when they don't follow the crowd is also the foundation of their foothold in the market.

2, indelible:

Hot money has an indelible effect on active market prices, and very rational value investment is also not desirable. In that case, the whole market will be in a stagnant pool. Without waves, the capital tide in the market will not flow. This situation will not attract investors from all walks of life. The allocation of market resources has lost its due function in this market, and the capital market will not develop forward.

3, found that the price is too high:

Hot money has also found excessive price effect, which is more obvious in the futures market. Last year's crude oil futures reached $65,438 +047, which is an example. Hot money can also disrupt the market and even the economy of a country or region. 1997 southeast Asian financial turmoil is an example. In short, we should use the advantages of hot money to discover the value function and avoid its disadvantages and the consequences of excessive speculation.