Today, Big A makes us understand two things.
Clause. First, under the nest, there are no eggs.
In the morning, the three major A-share indexes collectively fell sharply.
The Shanghai Composite Index once fell to 2635, and the ChiNext Board also lost 1500 points intraday.
More than 900 shares in the two cities fell to the limit, and the decline of more than 8% once reached more than 4,000.
Some people say, I don't invest, what does it matter to me to fall sharply?
In fact, in Wen Zitao's view, those who care about the future of the country must care about the economy, and those who care about the economy must care about it, because it has a conductive effect and is ultimately closely related to each of us.
Under the avalanche, everyone is a victim.
Clause. Second, the U.S. stock market hit a new high, and finally understood what it means to "sigh with hope"!
Big A has fallen and fallen, and has fallen out of the feeling of a stock market crash.
So, who is shorting A-shares?
Clause.
1. Foreign-funded financial institutions.
According to an investigation by a reporter from the Financial Associated Press, before the "Life Safety Act" proposed by anti-China U.S. lawmakers on January 26, Beijing time, foreign financial institutions such as BlackRock and JPMorgan Chase had quietly sold Hong Kong stocks such as WuXi AppTec and WuXi Biologics.
So the question is, why can the "foreign composition" of the United States be so lethal?
And who is amplifying the panic?
Why can these foreign-funded institutions "predict the future" and start in advance?
Is it just well-informed? Or is there someone joining forces with anti-China congressmen in the United States?
After all, in the United States, anti-China has always been a business.
Business always needs to be profitable.
Clause.
Second, the refinancing that was scolded by everyone.
According to the data, when WuXi AppTec repeatedly clarified to the market in an attempt to extinguish the fire, the number of its A-share refinancing securities soared by 30 times month-on-month!
From more than 20,000 shares to nearly 1 million shares, it provided ample "ammunition" for market bears.
It was these endless short orders that directly smashed WuXi AppTec's A shares by 4 down limits.
Outside, there are anti-China congressmen in the United States who are building momentum, and there are foreign-funded institutions that take advantage of the opportunity to short, and there are empty orders that cannot be bought, so they can only fall and fall endlessly.
However, WuXi AppTec was just a fuse. Subsequently, more people found that refinancing was the culprit of the sharp drop in A-shares.
Many people may not understand the principle of refinancing.
For example, ** is sold to A, A is suppressed and sold to B, B is financed to C, C is suppressed and sold to D, and D is again. And so it loops endlessly!
Just like Evergrande's serial loans, one thing is more than one mortgage, and 3 billion capital can be 2.5 trillion debt!
Like an acceptance bill, it can be endorsed an unlimited number of times.
Theoretically, securities lending can be sold an unlimited number of times, which means that there is a reserve limit for an unlimited number of loans, but there is no end to securities borrowing and lending.
Therefore, refinancing is like a perpetual motion machine for smashing the plate, and a chip can be smashed infinitely.
What's even more disgusting is that you can repay it in cash after shorting the securities borrowing. The so-called short selling is blown up, that is non-existent.
Since shorting can be profitable, and there is no risk, it is necessary to short and short, and smash and smash. Endless can't be bought, can't be bought at all.
Think about it, as long as there is securities lending, **want**, isn't that a fantasy?
So where does the borrowing and lending in the market come from?
Shareholders of restricted shares,**
It is estimated that many people can't imagine that the ** they bought can lend their own positions to short themselves.
Isn't this the equivalent of smashing yourself with your own money?
This is the fundamental reason why many ** fall worse than **.
On the one hand, institutions and large investors use short-selling tools to desperately drink the blood of **, and on the other hand, there is nothing they can do, only those who want to cry and lose money without tears.
I originally wanted to invest, buy ** tickets, and share the results of the motherland's economic take-off, why did I pay for it all the time?
In this case, whose mentality will be good and will not collapse?
The good news is that the state has suspended refinancing; The bad news is, after all, there is still a time lag between the landing.
So some people staged the final madness.
Clause.
3. The consequences of liquidation of pledges.
Another boost from the bears comes from the liquidation of the pledge of major shareholders.
There are only two results of liquidation, either to cover the position, or to let the liquidation liquidation.
Take a look at this full screen of supplementary staking announcements, and you'll understand how bad things are right now.
What is Supplemental Staking?
For example, if a major shareholder has 1 billion shares in his hands and needs funds, he will take out 500 million shares to go to a financial institution for a mortgage.
Financial institutions are not stupid, there are ups and downs, large fluctuations, in order to prevent the stock price from causing losses to their own interests, they will set an early warning line and a liquidation line for the stock price of the pledge.
Once the stock price** exceeds the guarantee warning line, the major shareholder will be reminded that the pledge needs to be replenished.
Let's take 150% 130% as an example.
In order to facilitate the calculation, assuming that the major shareholder is pledged when the stock price is 10 yuan, the pledge rate is 40%, the early warning line is 150%, and the liquidation line is 130%, then the corresponding :
Early warning** = 10 * 40% * 150% = 6 yuan, that is, *** 40%.
Close position**=10*40%*130%=52 yuan, that is, ***48%.
When the stock price is close to the warning line continuously, the financial institution will require the major shareholder to make up the position; When the liquidation line is reached, and there is no way to make up the position and repay the money, the financial institution has the right to sell the pledged ** in the secondary market. That is, a forced liquidation.
In Wen Zitao's view, some can still be made up, but more major shareholders will let them blow up their positions and then liquidate. Because it's going to be ** anyway, this forced liquidation is exactly what you want. This is the so-called passive cash-out.
As for the 200 billion of snowballs being knocked in, it is just a matter of mowing the grass and beating rabbits, and being piggybacked.
What is systemic risk?
In fact, the current situation is self-evident.
Clause.
Fourth, panic is amplified.
Panic is contagious like a plague.
Once the panic is amplified, it will eventually reach the market, and the more it falls, the more it cuts, the more it falls.
Warren Buffett once said, "I am greedy when others are afraid, and I am afraid when others are greedy".
Rationally speaking, now that there are more policies and the Red Army to save the city, the space is limited.
However, the bottom of the policy is often not the bottom of the market. Under extreme panic, no one dared to pick up the flying knives in the sky.
Thus, the vicious circle is endless.
Why are A-shares so vulnerable?
Some people ask, as the world's largest financial market, why is the United States not afraid of foreign capital? Why is the world welcome to come and buy?
Because it can do it, whoever violates the law will be punished for bankruptcy, and whoever will be put in prison!
But, what about us?
More than 100 years ago, Wei Yuan proposed that "Shiyi has long skills to control raze", and now it seems that it is still applicable.
For those who are still wantonly shorting and eating ugly, a reminder, do you remember the black sheep who made waves in 2015?
How many people are inside, and the sewing technology has been perfected.