The Financial Instruments Themselves Are Innocent.

"Gossip is empty. I was on vacation in Jiuzhaigou. I thought the rumor had better be ignored, but because the rumor was so noisy, my husband suggested that you better clarify it, so I sent a micro-blog, saying I was on vacation."

Li Yifei, chairman of the British national group, said in an interview with the financial network reporter.

In August, Bloomberg quoted people familiar with the matter as saying that Li Yifei was taken away by the Chinese police to assist in the investigation. Bloomberg said that the investigation was related to the sharp fluctuations in the stock market.

How do we see the term "short China"? Li Yifei said, "financial instruments are innocent, and the people behind it are using it. The most important thing is to see whether the use of the tools is reasonable, compliance and legal, and also to manage.

This should be a wake-up call for us in this market shock.

Li Yifei further explained that

Very complex, western countries have hundreds of years of development history, and our stock market has only twenty or thirty years of history, but in the past five to eight years, China's stock market has been developing at a speed of light. In a short time, a lot of reforms have been pushed forward. Therefore, many complex financial instruments have been introduced, including stock index futures, bond futures, options, and immediately our SDR will enter the basket of IMF, and China's stock will enter the MSCI index.

It is precisely because of these changes in China's economic development that the development of the financial market will be accompanied by even surpassing development.

She further explained that "hedging is plated into a" risk aversion "in Taiwan, and it is a hedging tool. But there may also be some organizations that make use of all kinds of complex tools to make quick profits or even take the initiative to make profits. There may be short selling, but all of them are going to" empty China ". This concept is wrong for me. Who can profit from shorting up their own country? Who dares to be short of China? Especially our large fund companies, our wholly-owned subsidiaries in China are all involved in all kinds of QDLP, QFLP and so on. Some Q is a rule, a quota, as long as it is an application.

We must comply with our regulations. Our chief compliance officer often comes to China to communicate with regulators.

"So these financial instruments themselves are innocent.

Is it wrong to sell short? Somebody must be short, because the invention of stock index futures is short for sale. Of course, there are short selling tools for commodities. Short selling tools are actually a good tool to help smooth and neutral development of the market, and a tool that financial institutions can use. However, China is just a large retail market, and retail investors are more herd. Therefore, in this process, there must be some institutional investors in order to make profits and use hedging tools.

This short selling may not be malicious, because the original intention of the agency is to protect the interests of the investors behind it. After all, institutional investors are still personal investors, but they may be high net worth retail investors.

Li Yifei said.

So I think that part of the theory of "short selling China" may be conspiracy theory, and the other part does exist a small number of people making use of people's ignorance to make profits, but is this short selling to destroy the country? How to evaluate profit? Investment is for profit, but profit from compliance and risk prevention. I think this is a lesson we can learn in this stock market shock.