Shorting Stock Market Power And Moving To Overseas Governments

These two days China

The collapse of the stock market has further shown the fragility, immaturity of the Chinese stock market and the weakness of the government as the market maker.

As long as there are problems in China's stock market, greedy investors will take the lead.

That is to say, for these greedy investors, if they have the chance, they want to consider the public interest of society.

This is the basic reason for the two days of China's stock market.

In the face of these two days, China's stock market plummeted, the regulatory authorities had to publish an article, saying that the regulatory authorities had organized the law enforcement force to conduct on-site verification on the 27 day's focus on selling stocks and other clues.

At the same time, it also stated that the national team did not withdraw from the market at all.

Some analysts pointed out that from these two days

In recent years, investors who have gone against the stock market in China have gone abroad from their own country or abroad.

It can be seen that in the first two weeks, China's stock market plummeted, and the market clamored for regulatory authorities to prevent stock market futures from selling stocks maliciously.

This has led the CSRC to be forced to sell the stock index futures in a high investigation department. The China Financial Futures Exchange also had to restrict the stock futures market's short positions and not allow the sale of empty orders.

These Interim Provisions not only weaken the ability of stock market investors to make short selling money through stock index futures, but also make these investors dare not to be reluctant to make short selling of China's stock market, otherwise they will easily catch fire.

In fact, since the three major index futures in July 8th, the turnover and non open positions have been greatly reduced. The settlement date for the three main contract dates of the index IF1507, IC1507 and IH1507 has been greatly reduced in July 17th.

Even after a week after the settlement, the Shanghai and Shenzhen 300 index has increased to about 90 thousand positions, but it still has much less than usual positions, only 1/3 of the usual contracts.

For example, in June 27th, the three main force index nearly 280 thousand positions.

In recent days, the volume of domestic three major index futures has shrunk.

Even this Monday, the CSI 500 index and the Shanghai and Shenzhen 300 index and other contracts fell sharply, but the turnover was also lower than the previous trading day, and there was no panic selling futures index.

However, although the domestic stock index futures market shortens the strength of China's stock market, it has a strong impact on China's stock market.

The act or power of shorting China's stock market has not weakened, and it has shifted from domestic to overseas.

It includes Hongkong's H-share index and Singapore FTSE A50 index futures.

Judging from the current H-share index, there are no more than 18.6 tens of thousands of liquidated stocks this month, and more than 32.4 million copies in two months, nearly 10% more than the beginning of the month. The total value of all the month is 400 thousand, involving a total value of 180 billion yuan or more.

Did the domestic regulators notice the size of such a big spoil?

In addition, Singapore's FTSE A50 index futures, which has become a hot market for overseas investors in recent years, has significantly increased volume.

According to the data in the evening of July 28th, the July (XUN5) FTSE A50 period was about 448 thousand, and the August settlement (XUQ5) index was 207 thousand, with a change of 1 US dollars per point and the total value of the contract above US $5 billion 500 million.

From these data, we can see that due to various restrictions in the domestic market, the strength of shorting China's stock market is no longer in China and has begun to gather overseas.

Or Hongkong or Singapore.

For this stock market power, it has long been bloodthirsty, and it is impossible for them to "lay down the butcher's knife and set up a Buddha".

On the surface, they will take market mechanism as the key to maximize profits.

Since the advent of financial derivatives in recent years, as long as there are one hundred percent profits or even hundreds of millions of profits, they will have nothing to lose.

So, in the face of the disaster in China's stock market, these investors will surely take the lead.

Now the question is, can the Chinese government and regulators see this situation? Can the Chinese government be able to recruit foreign investors to compete in China's stock market? How can the Chinese government think about how tough the domestic investors may be? How can China's stock investors go into the stock market and open up the stock market with BMW? But can they also play the same role for overseas investors? In fact, for the current overseas investors to short the Chinese stock market, the Chinese government should dare to act as a way to defeat this attack on the Chinese stock market equally easily.

In fact, the core of the stock market is determined by expectations. If the strength of the short selling Chinese stock market is too strong and the volume of pactions is too large, facing the fragile Chinese stock market, it will not only make profits easy, but also strengthen the stock market's falling expectations, which will lead investors to sell and run away.

Under such circumstances, the stock market will plummet and then plunge until the stock market collapses completely.

Did domestic regulators see clearly?