What does the short position of stock funds mean? People who have been exposed to stocks and funds at the same time can easily distinguish the two. The following is the significance of Bian Xiao's sorting out the short positions of stock funds for everyone, hoping to help everyone.

What does the explosion of stock funds mean?

The short position of the fund, that is, the "forced liquidation" of the fund, refers to the situation that the user's interest in the investor's special deposit account is negative under certain circumstances.

Specifically, when the assets in the investor's credit account can't meet the legal standard, the securities company informs the investor that the additional margin is fruitless, and then implements compulsory liquidation, directly transfers, freezes, deducts the margin in the investor's account or sells the funds in his account, and uses the obtained funds to pay off the arrears.

When will the fund explode?

There will be short positions, often because the fund losses are too serious. Generally speaking, it may be because the risk control of the fund is too poor, so the fund fell badly; It is also possible that the fund manager added leverage, but after adding leverage, stocks or bonds developed in the opposite direction, thus triggering short positions.

Generally speaking, Public Offering of Fund in China will not explode. However, if the asset allocation ratio exceeds 100%, that is, the fund manager leverages through bond pledge repurchase, then when the price of pledged bonds falls and some funds pledged by the fund manager suffer losses, it may cause great losses and lead to short positions.

Public Offering of Fund has strict institutional leverage restrictions on investment: the leverage ratio of open-end funds should not exceed 140%. For fixed funds, the closed period shall not exceed 200%, and the open period shall not exceed 140%.

Compared with Public Offering of Fund, private equity funds in China are more likely to break out, because the investment risk of private equity funds is higher. Especially for some equity private equity funds, when the companies they invest in are not listed, it means that private equity funds are in a state of loss, which is easy to cause short positions.

What does the stock explosion mean?

Short position of stock refers to that when the loss is greater than the deposit in the account, the securities company forces investors to close their positions. Generally, it appears in margin financing and securities lending accounts, and ordinary accounts will not break out.

Investors buy and sell stocks in margin trading accounts. When the loss reaches a certain level, that is, it touches the liquidation line, there is no additional margin. In order to reduce risks, securities companies have to close their positions. In the past, the maintenance guarantee ratio was a certain number of 1.30%. However, these two companies have recently introduced new regulations. Members should carefully evaluate and agree with customers on the minimum maintenance guarantee ratio according to market conditions, customers' credit status and the company's risk management ability, that is, the maintenance guarantee ratio.

For example, when Xiaoming opened the authority of margin financing and securities lending because of his good credit standing, the proportion of maintaining guarantee with the securities company was 150%, that is, when Xiaoming borrowed money from securities to buy stocks or borrow securities, when the loss reached 150%, there was no additional margin, and the securities company forced to sell the stocks held by Xiaoming out of risk considerations, that is, the stocks exploded.

What is a stock pledge explosion?

To put it simply, the stock pledge means that shareholders put the stock as a guarantee into capital, and the stock pledge explodes. In other words, the market value of pledged shares is lower than the loan amount. If shareholders fail to perform their debts, banks want to sell shares safely, resulting in a large number of shares being sold, serious losses at the shareholders' meeting, and the company's share price will also fall sharply, and investors are likely to suffer losses. In addition, in fact, there is another kind of stock pledge explosion itself, that is, the stock price falls below the pledge liquidation line. If shareholders don't always provide collateral, they will be sold all the pledged shares, so this is a continuous plunge for the stock price.

What are the consequences of the pledge of shares by major shareholders?

The three main consequences of the pledge of shares by major shareholders are as follows:

1, the share price fell. The explosion of pledged stocks by major shareholders can be regarded as significant bad news, which will lead to a sharp drop in the stock price, and then the company's stock price will enter a negative cycle. After the major shareholders are short positions, the circulation of stocks will continue to rise, making the stock price lower and lower.

2. Small and medium investors lose money. Short selling by major shareholders will lead to a serious decline in stock prices, causing losses to small and medium-sized investors, and even many small and medium-sized investors will lose their money because of short selling by major shareholders.

3. The actual controller changed hands. After the big shareholders are short, they need to sell other stocks to make up for this gap, which is particularly easy to cause the actual controller to change hands and make the company unable to operate normally.