Lou Jiwei: it is suggested to expand short selling mechanism and improve market clearing mechanism

category:Finance
 Lou Jiwei: it is suggested to expand short selling mechanism and improve market clearing mechanism


Second, change the regulatory thinking and introduce the short mechanism. Regulators should maintain the fairness of the market mechanism and the full disclosure of information, rather than take the initiative to bear the responsibility of the indexs rise and fall. In the future, we can appropriately expand the short mechanism to form a market-oriented punishment system for financial fraud companies, so that the market can play a more effective price discovery mechanism, so that good stocks can be distinguished, and provide investors with tools to hedge against falling risks. At present, the markets long short strategy is actually a stock long, using short stock index to hedge. It is suggested to launch a real long short investment strategy in time. For individual stocks short, we can use the hedging mechanism tool of industry individual stocks long to improve the market clearing mechanism.

Third, prudent liberalization under capital. In addition to the United States, the cross-border flow of large amounts of short-term funds is of no benefit to the economy, and governments and scholars have reached a consensus. We must prudently and prudently promote the opening of capital account. The opening of capital market is not equal to the opening of capital account. China must be cautious on the issue of capital account opening, cultivate capital market instruments in stages and step by step, expand the participation of foreign financial institutions, and relax the control of capital account transactions. We can start from the Treasury bond market, and then gradually spread to the stock market, but we must form a closed-loop to prevent arbitrage. At the same time, we should strengthen the construction of anti money laundering system and prevent the convenience of cross-border capital flow from becoming a new money laundering tool.