What Does T+0 Trading Mean For Investors?

The pros and cons of the T+0 and T+1 trading mechanisms in China's stock market have lasted for many years, but the management is relatively cautious, while the market is more reliant on it. Some people think it is a good weapon to save small and medium investors in China. Is that true?

Today, I look at the financial sector "ask for A shares to revitalize the essay". The first place in the number of votes is an article about T+0. Its core idea is: "stock T+1 trading mechanism is unreasonable.

The current T+1 trading mechanism only restricts the T+0 trading opportunities of retail investors, and does not play a role in all kinds of institutions and private equity funds. This is not only an important source of rat trading, but also a major obstacle to the healthy development of China's stock market.

It also suggests abolish the T+1 trading mechanism and implement the T+0 trading mechanism.

Hype can be said to be in full swing, but the small and medium investors who participate in it are still losing money and earning less. From another point of view, the trading mechanism is not the main reason. Frantic frenzy and frequent trading are the main reasons. The relevant data released by the Shenzhen Stock Exchange also show that more than 80% of the new accounts are retail investors, and half of them are in deficit, some of which account for 99% of the losses, and accounts for 100 thousand yuan are the most serious.

But when investors make mistakes, the implementation of the T+0 trading mechanism as a means of error correction is not a bad idea. But it is not only overstated that it is necessary to increase the T+0 trading mechanism to save the Chinese stock market and save the small investors in China. In my view, investors may be more irrational and more losses. Therefore, even if the T+0 paction mechanism is implemented, it is necessary to carry out certain norms instead of allowing investors to use the T+0 trading mechanism without restriction to make the market more volatile and allow investors to increase more opportunities for losses.

From the number of soliciting articles, there are six articles dealing with the issue of trading mechanism. It is mainly suggested that T+1 be changed into T+0 trading mechanism. From the voting situation, all suggestions to implement T+0 trading mechanism are in the front. This proposal has also been supported by many netizens. Netizens think: "the current stock market in China is T+0, while spot trading is still under the T+1 trading system. The majority of small and medium investors can not sell on the same day, while institutional investors have chips in their hands, and have the advantage of T+0 of stock index futures. They can buy and sell on the same day, and can raise or suppress stock index and stock price through stock index futures and spot, so that the majority of small and medium investors can only be money losing persons.

The sharp rise and fall of the T+1 system is a clear example of the fact that many small and medium-sized investors are losing their jobs.

It can be seen that the T+0 trading mechanism is generally recognized by the small and medium investors in the market, and it is hoped that it will change the fate that it often does not reap. From the point of view of the author, it is not the T+! Trading mechanism that restricts the healthy development of China's stock market, nor is it the T+0 trading mechanism for saving the small and medium-sized retail investors in China.

If the T+0 trading mechanism fails, it will become an important channel for small and medium-sized investors to lose their market value.

The implementation of the T+1 trading mechanism in the spot market and the mismatch of the trading mechanism become the biggest culprit of the institutional investors to encroach on the interests of investors. The author believes that the implementation of the T+0 trading mechanism in the futures market is not unreasonable. It is also unreasonable for the small and medium investors to form. But the futures market is based on the Shanghai and Shenzhen 300 index as the contract target, and has no correlation with the vast majority of shares. Most of the 300 stocks in the Shanghai and Shenzhen stock markets are undervalued in traditional industries, such as banks, brokerages, insurance resources, real estate, iron and steel, etc., and the general retail investors are not fond of it, nor are they willing to participate in the investment. Small and medium-sized retail investors prefer the small cap stocks, and this part of the stock has little correlation with the Shanghai and Shenzhen 300 index, and the trend has more independence. Some people believe that futures trading will turn trading on the same day.

The Shanghai and Shenzhen 300 index is easy to manipulate and is related to the stock index index. The four major sectors of the people's livelihood and two barrels of oil share a larger share.

The market value of the market is very large now, so it is almost impossible to control the whole market.

Therefore, it is far fetched to carry out the T+0 trading mechanism in the futures market.

Of course, sometimes the main funds are not manipulating the purpose of manipulating the futures index through manipulating large cap stocks, but this is not a mistake in the trading mechanism, but a mistake in the soil of market survival. It is a mistake in the supervision of management.

The use of stock index futures hedging has led to panic in the market by throwing up weight stocks or pulling up heavyweights, which is essentially a matter of investor shareholding mentality, which is excessive speculation and excessive emphasis on short-term returns.

A large number of investors have less capital, and the large amount of money of institutional venture capital is relatively large, which can implement the T+0 trading arbitrage on the same day. This is an objective existence, but this is the problem of investors' own operation. They are too obsessed with full warehouse gambling, with less capital and less stock buying. They can control the positions and carry out the rotation arbitrage together with the main funds.

This is the problem of wind control rather than trading mechanism.

The long-term loss of small and medium investors is not the T+0 or T+1 of trading mechanism, but not T+0 or T+1 of trading mechanism, they are keen on short-term arbitrage, they are keen on short-term arbitrage, they are keen on short-term arbitrage, they are keen on short-term arbitrage, they are keen on short-term arbitrage,, in June, in the 13 years, the vice chairman of the China Securities Futures Research Institute, in 13 years,, the vice chairman of the securities and futures of the trade, the 13 of the trade, in 13 years,, the vice chairman of the securities and futures of the trade,, in 13 years, the Beijing securities futures of the trade, and the trade of the trade, and the trade of the trade, it is roughly balanced compared with the proportion of the stock.

Now let's look at individual investors. One of the characteristics of China's stock market is that individual investors are the main participants in the price formation of China's stock market.

personal

Only 27% of the market value, but the proportion of trading volume reached 85%.

The turnover rate in China's stock market can reach 700% and 800% in first, first years.

Li Xunlei also pointedly pointed out: "the retail market value of Chinese market accounts for 15% of the total market, but 15% of the retail investors generate 85% of the volume of pactions. Therefore, A shares are retail markets. It is precisely because frequent handover leads to a sharp decline in investment returns, and if the long-term holding, the real market returns are still amazing.

"

Investors who are keen on short-term arbitrage mostly lose money because of Trading Commission and stamp duty. Every paction investor needs to pay the corresponding fee. If you buy a stock, you get 10% gain, but your actual income is not 10%, only about 9.3%, but if you buy the wrong stock, you will lose a price limit.

Not only 10%, but 10.7%, so even if you press a daily limit and a drop in limit, your total market value can not be flat, and it will lose 1.4% of the market value. Small investors can reach an astonishing 700-800% turnover rate in one year. Investors do not know how many times they have traded and how much commission and stamp tax they have spent, so the loss of investors is mainly due to excessive pactions.

In a market, the main reason for the loss of investors is that pactions are too frequent. At this time, the best way to save China's small and medium investors is to curb excessive speculation and reduce the number of pactions, instead of adding fuel to the fire. The implementation of T+0 pactions will further stimulate investors' speculation and further increase the number of pactions. This is counterproductive, not only will not reduce investors' losses, but only increase the risk of loss.

The fund companies in professional institutional investors hold nearly 15%, accounting for 13% of the paction volume, and the fund companies in professional institutional investors account for nearly 15% of the total paction volume, accounting for 13% of the paction volume. We can briefly compare that, we can find that the time of institutional ownership is much longer than that of small and medium-sized retail investors, and the turnover rate is much lower than that of small and medium-sized retail investors.

This may not be very consistent with the facts, but is a speculation in the market.

From a micro perspective, China's stock market, especially small cap stocks, such as

Small and medium-sized board stock turnover rate is high, many stocks daily turnover rate as high as 10-50%, the entire gem daily turnover rate is often as high as 4-5%, so that the annual turnover rate is very high, the overall turnover rate is close to 10 times, which is mainly small and medium investors to participate in, chase up the results of the fall, but it is undeniable that the leading role is to stir up the role of big funds, if small and medium investors do not participate in it, do not chase up and down, the main funds are helpless, it is impossible to complete arbitrage.