T+0 trading is the common name of participants in China stock market, and its official name is "intraday revolving trading". The trading rules of Shanghai Stock Exchange (revised 20 18) clearly state that "revolving trading of securities refers to the securities bought by investors, which are sold in whole or in part before delivery after the transaction is confirmed".
China bonds, bond trading open index funds, trading money market funds, gold trading open securities investment funds, cross-border trading open index funds, cross-border listed open-end funds, warrants, and other varieties approved by the China Securities Regulatory Commission (the cross-border trading open index funds and cross-border listed open-end funds mentioned in the preceding paragraph are limited to open-end funds that track index components or investment targets, and B shares will be traded on the same day from the next trading day). At present, China stock market uses T+ 1.
Generally speaking, the funds obtained by selling stocks on the same day can buy stocks on the same day, and the stocks bought on the same day can be sold on the same day (T+0 transaction), while the securities and funds are cleared and delivered on the day when the transaction actually occurs (T+0 settlement). The above two cannot be confused. T+0 settlement is a necessary and sufficient condition for T+0 transaction.
The difference between T+0 trading system and T+0 settlement system
Strictly speaking, the concept of "T+N" should actually refer to the settlement system, while investors in China's market usually talk about "T+0 transaction", and the two cannot be confused. The first "T" of "T+N" is "Transaction" in English, which means that investors have equal rights to trade securities in both directions, that is, investors can sell before buying, and buy before selling on the same day. Therefore, for overseas securities markets, T+0 trading is a basic trading mechanism, which embodies the equality of investors' trading rights.
T+0 transaction does not need to change the settlement system to T+0 settlement, and there is no conflict between them in law and practice. China A-share market is T+ 1 trading and T+ 1 settlement, while most overseas markets such as the United States are T+0 trading and T+2 settlement.