Collaborative short alert transplanted to A-share market model

 While we are all worried about the direction of Chinese listed companies in the United States, when they heard different voices, saying, stock price continued to fall, short fund a substantial profit. This pattern is characterized by short, negate. The result is a great number of Chinese companies listed on U.S. stock price anomalies in the doldrums, and even the privatization of many companies desire to withdraw from the market, and then return to the domestic A share market.

ultimate goal of short medium and small investors

In fact, this collaborative model has short funds in the United States some of the short maturity of the profit model.

short fund companies to target the suspected problem, as a hunting target, and then buy short, waiting for an opportunity disclosure of financial problems, caused stock prices. At the same time, research institutions, released a report Tiaofenlvxi, negative on prospects for the company. Counsel made this time follow up allegations of fraud, so that suspected problems companies face huge compensation risk, exacerbated the market panic, give these companies even worse, leading to further decline in stock prices. The negative evaluation of the media amplified the negative factors are multiplied, giving a strong negative feeling of flying. Thus, the Fund's short position short to be a big profit by their. Over the past year, there have been RINO International, the world journey, Bo Yun, Orient Paper and other listed companies in China to the United States face the United States hunt short fund, its share price continued to plunge 40% to 60%, or even eventually ordered to withdraw from the market.

hunting suspected problems in the short fund the company's process, the information is completely asymmetric, uninformed small investors know nothing about what will happen to these companies have been holding the stock Investors do not see how serious the problem of evil extent that missed the opportunity to stop in time, the more sets of deeper losses. And do not hold stock investors see these companies share prices plunged quickly, trying to grab a rebound and Huozhongquli courageously reached, the result became the initiative to buy sets. In fact, small investors hunting is the ultimate goal of short funds, because the nature of the securities market is a zero sum game, short funds is small investors lose money. Problem is suspected victims of the company, of course, but also the use of props are short funds.

This results in a few short side tacit coordination, while other parties have been kept in the dark. U.S. claims rule of law, all operate within the framework of the law, short is legal public; research and analysis report is only one of the words, only for reference; lawyers is led according to the law of fraud charges, a loss of medium and small investors can only become Wengzhongzhibie.

transplantation model has been qualified collaborative short

that A-share market in the short mode is also unheard of, has ever seen.

One reason is that A-share market over the years has not been able to profit by short, to make money in the market, it can only do more to get through the post to push prices higher profits. Only a short stage means, the aim is to suppress the stock price, is to do more to create lift the stock price of space, and ultimately do more than share prices have rebounded by profit. The short is a need for chips, the chips come with their own short holding is actually a self-injurious behavior, heat control, it might shoot yourself in the foot. On the other hand because of the short side also fledgling, it does not have the energy to mobilize the power of various coordination But since the United States less effective collaborative short mode, in which the interest is so great, will definitely attract the A-share market in the interests of the parties to study, eventually entirely possible transplant used for the short side.

now the A-share market has shrunk, volume is large enough, the interest in the market square has also been a great energy, and stock index futures in the short run makes the A-share market can be profitable long, short, not only a means, short as the purpose of benefit. With the constant expansion of stock index futures, both long and short interest is also growing, so the driving force will become increasingly strong. See the past, people are more speculators are doing for a long time to do anything to the means, such as collusion with the listed companies manufacture good news, or even simply false accounts to deceive investors, stock analysts of the use of public stock, or rumor spreading false news confuse; in the future people are likely to see short Chinese-style collaborative model, using the power of multi-target multi-stage company's stock price continued suppression of the habit of doing more like grab a rebound in the medium and small investors hit hard.

view of this, the market should be especially wary of the parties to the United States collaborative model imperceptibly short transplanted to A-share market in the past, because the A-share market decide that this mode of mass destruction particularly large, medium and small investors were almost defenseless.