In recent years, more and more investors have chosen to liquidate their accounts, which is a phenomenon worth pondering. In the past, although the stock market has also been volatile, there have been bull and bear markets in general, which has brought investors the opportunity to unwind and profit. However, since the introduction of mechanisms such as quantitative trading, margin trading and stock index futures, the stock market seems to have fallen into a long-term bear market, which has caused a lot of trouble for investors.
Before the introduction of quantitative trading, margin trading and stock index futures, the stock market was relatively stable, although it was also volatile. Stocks that are hedged in a bear market are often able to unhedge or profit in the next bull market. This gives investors confidence that they will remain patient even in a bear market and wait for the market to pick up. However, since 2015, the stock market has entered a long bear period, and this seems to have changed.
In the traditional stock market, retail investors will also be "cut leeks", but on the whole, the stock market is still developing normally. There are bear markets and bull markets in the stock market, and although stocks will be locked in a bear market, when the next bull market comes, they can basically be unhedged or profitable. However, with the introduction of short-selling mechanisms such as quantitative trading, margin trading, and stock index futures, the stock market began to experience abnormal volatility. In particular, quantitative trading and securities lending transactions have made the phenomenon of "cutting leeks" in the market more frequent and serious. Many stocks have been repeatedly "wheel wars", resulting in falling stock prices and increasing losses for investors.
Quantitative trading and securities lending are one of the important factors that lead to a long-term downturn in the stock market. Quantitative trading is the use of computer programs for high-frequency trading, which can complete a large number of transactions in a very short time. Although this method of trading increases the liquidity of the market, it also increases the volatility of the market. Securities trading, on the other hand, allows investors to sell without actually owning the stock, which further increases the short-selling pressure in the market.
The introduction of these mechanisms has led to a significant increase in speculation in the stock market, and stock prices have been frequently manipulated, resulting in a more common phenomenon of "cutting leeks" in the market. Since 2015, the stock market has entered a long bear period, quantitative trading and securities lending trading have been rampant in the market, stock prices have been continuously depressed, and investor confidence has been severely hit. The defense battle of the 3000-point index has been staged repeatedly, and individual stocks have been bleeding like a river, and many investors are deeply trapped in it and cannot extricate themselves.
Experts suggest that the supervision of quantitative trading and securities lending should be strengthened to limit the excessive impact of these mechanisms on the market. At the same time, governments and regulators should take steps to stabilize the market, boost investor confidence, and restore a healthy market environment.
In addition to quantitative trading and securities lending transactions, phenomena such as ST, counterfeiting, and delisting have also had a negative impact on market stability. In recent years, ST shares have appeared frequently, and some companies have gained the trust of investors through false publicity and financial fraud, which ultimately led to huge losses for investors. The imperfection of the delisting mechanism has left the delisted company without a reasonable compensation mechanism, which has further exacerbated the panic of investors.
While the resumption of IPOs will help the market, it will also exacerbate market instability if it is not well regulated. A large number of new shares have been listed, which has dispersed the funds in the market, resulting in the loss of financial support for old stocks and further depressing stock prices.
- Netizen A: "The current stock market is like a bottomless pit, constantly throwing money into it but there is no hope. There used to be at least a bull market, but now only a bear market remains. ”
- Netizen B: "Quantitative trading and securities lending have turned the stock market into a big casino, and retail investors have no power to fight back." ”
- Netizen C: "Regulators should strengthen supervision, protect the interests of small and medium-sized investors, and not let the market be manipulated by large funds." ”
Expert Advice:
1. Strengthen supervision: Strictly supervise quantitative trading and securities lending transactions to prevent excessive market manipulation.
2. Improve the delisting mechanism: ensure that the delisted company provides reasonable compensation to investors to protect the rights and interests of investors.
3. Stabilize the market: Governments and regulators should take steps to stabilize the market, boost investor confidence, and create a healthy market environment.
In recent years, more and more investors have chosen to liquidate their positions, which not only reflects the long-term downturn in the market, but also reveals many problems in the stock market. The introduction of mechanisms such as quantitative trading, margin trading and stock index futures has exacerbated market volatility and led to the intensification of the phenomenon of "cutting leeks". At the same time, issues such as ST, counterfeiting, and delisting have also had a negative impact on market stability. Only by strengthening supervision and improving the mechanism can we restore the healthy development of the market and restore the confidence of investors.
Finally, you are welcome to share your views and suggestions in the comment section to discuss how to make our stock market more healthy and stable.