Why do more than 60 of investors support the implementation of the T0 trading system for A shares?

Mondo Finance Updated on 2024-02-23

Recently, T+0 has once again swiped the screen on the Internet. The reason is that at the symposium of experts and scholars organized by the China Securities Regulatory Commission on February 18, Professor He Qiang of the School of Finance of the University of Finance and Economics once again mentioned the topic of T+0 trading, and Professor He Qiang suggested that the "T+0" pilot project could be carried out in the state-owned blue chips and the Beijing Stock Exchange. As soon as the news was reported, it made waves in the market. According to the survey, 65% of investors support the implementation of the T+0 trading system for A-shares.

T+0 trading has always been a topic of great concern to investors. On July 24 last year, after the high-level proposed to "activate the capital market and boost investor confidence", the market was full of expectations for the resumption of T+0 trading in the A** market. But investors were soon disappointed. Because in the Q&A issued by the China Securities Regulatory Commission on August 18, 2023, the relevant person in charge of the China Securities Regulatory Commission made it clear that the time is not ripe to implement T+0 trading at this stage. The China Securities Regulatory Commission believes that at present, the A** field is dominated by small and medium-sized investors, and the small ** with a value of less than 500,000 yuan accounts for 96%, and the implementation of T+0 trading at this stage may amplify the risk of market speculation and manipulation, especially the large use of programmatic trading by institutional investors, and the implementation of T+0 trading will exacerbate the disadvantaged position of small and medium-sized investors, which is not conducive to fair trading in the market.

However, Professor He Qiang's suggestion on February 18 rekindled investors' hopes for T+0 trading. After all, Professor He Qiang participated in the symposium organized by the China Securities Regulatory Commission, and the purpose of the symposium organized by the Securities Regulatory Commission was to listen to the suggestions of experts and scholars on China's development. Because on the eve of the Spring Festival, the China Securities Regulatory Commission changed its commander, and Wu Qing became the tenth chairman of the China Securities Regulatory Commission, so at the beginning of his tenure, Wu Qing hoped to hear the voices of all sides, so there was a grand occasion of holding 12 forums on February 18 and 19. Because of this, Professor He Qiang's suggestion is worth paying attention to.

However, it is true that there is a large disagreement in the T+0 trading market. The view of the person in charge of the China Securities Regulatory Commission in answering reporters' questions on August 18 last year actually represents the view of some people in the market, that is, T+0 trading may amplify the risk of market speculation and manipulation, which is actually what the management has been worried about. At the same time, T+0 also encourages frequent trading, which will increase investors' losses in the event of investor error.

In fact, it is an indisputable fact that T+0 is a double-edged sword, and furthermore, T+0 is just a trading tool. Investors can reduce losses and increase profits if they operate properly; If it is not done properly, it will increase the loss of the investment. Therefore, there is no question of whether the implementation conditions of T+0 are mature or not, but only whether it will be used and whether it can pursue advantages and avoid disadvantages. If regulators consistently circumvent the launch of T+0 trading on the grounds that it may amplify market speculation and manipulate risks, then the competence of regulators is too questionable. After all, it has been almost 30 years since A-shares stopped trading on T+0 on January 1, 1995, and the regulator's regulatory ability should have been greatly improved.

As an investor, more than 60% of investors support T+0 trading, which is normal. Of course, 65% of investors support T+0 trading, which is not a very accurate data, after all, it is only an online survey, and the number of investors participating in the survey is limited, which does not mean that 65% of investors in the country really support T+0. The real story is that there may not be only 65% of investors who support T+0, and there may not be 65% of investors who support T+0, but there will certainly be a significant number of investors who will support T+0 trading.

So why would a significant number of investors support T+0? There are three main reasons for this. First, investors who are keen to do the best, T+0 trading allows investors to complete the purchase and sale transactions on the same day, without worrying about the next day's **, which greatly meets the needs of ** investors; Second, investors value the error correction function of T+0, which allows investors to sell and stop loss in time after discovering their mistakes, which is an important reason why many rational investors support T+0 trading. Third, some less mature investors, they only see the convenient trading side of T+0, but do not see the risk side of T+0; In other words, some investors will consider themselves to be stock gods and have good luck, and T+0 will only bring them benefits, not harm. It can be said that investors support T+0 for the above three reasons.

In my opinion, investors should seek advantages and avoid disadvantages for T+0, and cannot trade more because of T+0. Whether the investor wants to trade or not should be decided by ** itself. Trade when you should trade, wait and see when you shouldn't trade, and stop loss in time if you make a mistake, which is the attitude that investors should have towards T+0. Further, the management launched T+0, which we warmly welcomed, and if T+0 is not pushed, we will not do any harm. And since Professor He Qiang suggested T+0, then we actively support it. This is also an attitude of many investors towards T+0.

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