Li Zhongxin faced countless leaders of later generations in the conference room. His face was neither happy nor sad, but simply told the questions raised by the old man. He even had a feeling that he seemed to have returned to the time when he taught the students.

After Li Zhongxin talked for a while, he thought about it for a moment, thinking that the things he was talking about were not popular enough, so he continued to say, "What about this matter! I will talk about it with some simple things, and then everyone's views on this matter will be more intuitive.

Let me put it this way! I bought one million shares of stocks a long time ago, which means I had one million shares of stocks. However, through some institutions, I mortgaged these stocks and slowly got 800,000 shares. After I bought them directly, I had one million shares of stocks. Because of the reasons for my purchase of stocks and some other factors, the stock rose in an inflated manner, and people began to buy stocks in large quantities.

After all, people are bullish at this time and think that the stock market will continue to rise, but! I have 1.8 million shares of stocks in my hand, and I will sell them at a low price of more than 5% with 100,000 shares. Then, as long as I buy them, I will take out a lot and start shorting. The amount of funds in the stock market is basically not very large. It doesn’t matter if a stock has such a situation. However, if ten stocks or dozens of stocks have such a situation, people will feel abnormal.

When people feel panic, everyone will start selling stocks frantically, and the price of stocks will fall suddenly.

Short selling is a common operation method in the stock futures market. The operation is to expect the stock futures market to have a downward trend. The operator sells the chips in his hand at the market price, and waits for the stock futures to fall before buying to earn the intermediate price difference.

For example, when you expect a certain stock to fall in the future, sell the stock you own when the current price is high, and then buy when the stock price falls to a certain level. The difference is your profit.

Short selling refers to expecting a future market decline, selling the stocks in your hand at the current price, buying after the market falls, and making profits of the profit.

Short selling is a reverse operation of longing. In theory, it is to borrow goods first and then buy and return them. Generally, a formal short selling market has a platform provided by third-party brokers, which is generally similar to credit trading.

This model can make profits in the wave of price decline, that is, borrow goods at a high level and sell them first, and then buy and return them after the price falls. In this way, those who buy are still at a low level, and those who sell are still at a high level, but the operation procedure is reversed.

Common functions of short selling include speculation, financing and hedging. Speculation refers to expecting a future market decline, selling high and buying low, and obtaining the spread profit. Financing is shorting in the bond market and returning it in the future. This can be used as a way to borrow money.

This is a very normal thing. My capital volume is large and the small capital volume of a small country is small. I can manipulate it for reversal at any time. If you want the stock market to rise and investors to restore confidence, I will directly suppress the stock market. All the appearances are sell orders. If I short, then there will be countless financial speculators who follow it and short. It is impossible for a small country to buy all stocks immediately.

The stock market fluctuates greatly, so the foreign exchange fluctuates greatly. You can put money into the stock market and fight us! Then, we put a lot of money into the foreign exchange market and operate this matter there.

When you take the money to the foreign exchange market, my money goes to the futures market, some forward contracts and other places.

Anyway, no matter how these financial speculators operate, they make money. After a while, the foreign exchange reserves in the hands of small countries have been exhausted, but they have not built up the stock market and other markets.

In other words, such a blow is the most deadly. No small countries in Southeast Asia have experienced such a situation. Then they will be killed by those world-class financial speculators!

To use the simplest metaphor, a group of regular troops who have been trained in military battles with some children who have just graduated from kindergarten and don’t know when to fight, the result can be imagined." Li Zhongxin continued to tell the old man seriously, but the subsequent things were all quoted as a metaphorical pattern and told the essence. Through such a simple example, everyone can understand the powerful relationship.

In this matter, Li Zhongxin knew in his heart that the older the person is, the less he had any concepts about such a financial model. Those who truly understand these things should be the middle-aged people in their forties, who should be the elites in the country's economy.

Li Zhongxin could see clearly that the older people sitting in the front row were so confused during the process he told him. They probably didn't understand what Li Zhongxin said, because they had not experienced these things. The Chinese stock market and China's futures market were not perfect at this time, but it was more difficult for foreign hot money to enter the country and make money go out.

"Then what impact does this financial crisis in Southeast Asia have on our country! Now that the financial crisis in Southeast Asia has developed to such a level, what do you think about the future trend?" A middle-aged man raised his question after the old man signaled to understand.

This middle-aged man, Li Zhongxin, has a little impression, and he should be the one whom the CSRC has the most determined at this time.

If Li Zhongxin remembers correctly, it was this man who raised some very considerable questions in June, and the People's Bank of China made a decision to prohibit illegal funds from entering the stock market.

You should know that China's stock market is the most crazy stage at this stage. Sichuan Changhong and Shenzhen Development began to soar in the stock market. The price of Sichuan Changhong rose from 22 yuan to 66 yuan, and Shenzhen Development also soared, from 15 yuan to 49 yuan.

At this time, you can see the disadvantages of the stock market. This man is definitely not an ordinary person. He should have a very high understanding of stocks, securities and other things.
Chapter completed!