Naked short selling means that investors do not need to borrow another ** when selling short, but directly sell the ** in their hands. This mode of operation increases the volatility and risk of the market to a certain extent. In order to increase its own securities lending, the company lends its holdings to investors for short selling operations, thereby increasing the short selling power of the market.
However, in practice, some institutional investors or major shareholders may use the refinancing securities business to conduct malicious short selling operations, resulting in stock prices** and huge losses to other investors. In order to prevent this from happening, it should be directly stipulated that the ** company cannot engage in the business of refinancing securities, and if it has already borrowed and lent securities, it should be gradually understood, that is, after the actual securities borrower redeems, the refinancing securities will no longer be provided.
Such regulations can effectively reduce the possibility of malicious short selling operations and protect the interests of small and medium-sized investors. At the same time, the regulatory authorities should also strengthen the supervision and regulation of the market, formulate stricter systems and rules, and severely crack down on violations to ensure the fairness, justice and transparency of the market.
The regulation and management of naked short selling and refinancing is an important measure to maintain market stability and protect the interests of investors. Regulators should strengthen supervision and regulation, and formulate stricter systems and rules to ensure the healthy and sustainable development of the market.