Abstract On December 4, with the agreement of the China Securities Regulatory Commission, the Shanghai Stock Exchange, Shenzhen Stock Exchange and China Gold Exchange officially issued the relevant provisions on index melting, which will be officially implemented on January 1, 2016. From the abnormal fluctuations of the stock market this year, the ups and downs system is not enough to play in extreme cases...
On December 4, with the agreement of the China Securities Regulatory Commission, the Shanghai Stock Exchange, Shenzhen Stock Exchange and China Gold Exchange officially issued the relevant provisions on index melting, which will be officially implemented on January 1, 2016. Judging from the abnormal fluctuations of the stock market this year, the ups and downs system is not enough to play a role in stabilizing the market under extreme circumstances, and the necessity of introducing an index fuse mechanism is more prominent. 
Judging from the public comment, investors generally believe that the 30-minute blow time is too long, and such opinions account for the highest proportion. In order to minimize the impact on market liquidity while playing the role of the fuse mechanism, the three exchanges will trigger a 5% blow threshold to suspend trading for 30 minutes to 15 minutes, but retain the late stage to trigger 5% or all day. Trigger 7% to suspend the transaction to the closing of the arrangement.
The main considerations are as follows: First, there are many cases in which the domestic market has experienced large fluctuations in the late stage. The 14:45 and subsequent triggering of the 5% blow threshold will suspend trading to close the market to help prevent the risk of trading in the market.
Second, the CSI 300 Index is an important index product reflecting the overall trend of the Shanghai and Shenzhen markets. It has the characteristics of good representativeness and strong anti-maneuverability. When it rises or falls to 7%, it often means that the market has experienced violent fluctuations. Faced with extreme systemic risks, it is necessary to give the market more time to calm down and avoid the spread of panic and increase market volatility.
From the perspective of overseas markets, the United States, South Korea, India and other markets have arrangements to trigger the suspension of the highest-level fuse threshold to close, in order to prevent systemic risks.
Some market participants believe that it is not necessary to implement the index blown while maintaining the current price limit system. It is recommended to relax or cancel the stock price limit and introduce individual stock blows. After research, the index melting mechanism is the same as the price limit system, and all belong to short-term price stability measures.
However, there are certain differences between the two systems in terms of their roles and principles of action. The price limit system stipulates the fluctuation of the price of a single stock transaction, mainly to prevent the volatility of the price of a single security, and the securities can still be traded at the price of the price limit; the index melting mechanism is to suspend the entire market when the market benchmark index fluctuates beyond a certain range. The market trades for a period of time to prevent over-reaction in the market; after the trigger index is blown, the securities within the fuse range will be suspended during the fuse.
Judging from the abnormal fluctuations of the stock market this year, the ups and downs system is not enough to play a role in stabilizing the market under extreme circumstances, and the necessity of introducing an index fuse mechanism is more prominent. In addition, the price limit system is the basic institutional arrangement of China's securities market. Relaxing or canceling the limit of the price limit will affect the settlement risk management system, the leveraged business risk control measures, the market monitoring indicators and other current institutional arrangements, and the trading habits of investors. The impact is also relatively large and difficult to implement in the short term.
In the next step, the three exchanges will also combine the implementation of the index melting mechanism, adhere to the unity of reform efforts, rhythm and market tolerance, and constantly improve relevant trading mechanisms to promote stable and healthy development of the capital market.
Some market participants believe that the existing threshold is lower, the number of triggers may be more, and the threshold interval between the two files is too small, which may be triggered continuously. It is recommended to set only a threshold, or increase the threshold to 6% or 8%, or consider expanding The difference between the thresholds. We believe that under the premise of retaining the 10% price limit, the optional index melting threshold is limited, and the 5% and 7% thresholds are based on the analysis and calculation of the past 11 years of historical data.
Among them, 5% as the first-level threshold can take into account the dual needs of setting the cooling-off period and maintaining normal transactions; although the situation of triggering 7% is small, it is a major abnormal situation that needs to be guarded, and should be considered together to block the skyrocketing Extremely abnormal market conditions such as slumps continue.
Some market participants believe that the CSI 300 Index cannot reflect the trend of small and medium-cap stocks. Generally, the fuse benchmark index needs to select an index with strong representativeness, great influence, and difficulty in maneuvering. The Shanghai and Shenzhen 300 Index has the above characteristics. Compared with the single market index, the Shanghai and Shenzhen 300 Index can fully reflect the overall fluctuations of the A-share market. At the same time, the market value coverage of the CSI 300 Index and the number and size of the tracking index products also dominate the market.
Some market participants suggested that only a drop fuse should be set. We believe that two-way fuses are more conducive to curbing excessive trading and controlling market volatility. The domestic market investor structure is dominated by small and medium-sized retail investors, and the price fluctuates in both directions. There has been a panic decline and a rapid increase, including a short-term sharp rise in the market due to an accident. Therefore, when the market “swollenâ€, the fuse mechanism is also needed to stabilize market sentiment and prevent investors from overreacting to the market, so that investors have more time to further confirm whether the current price is reasonable.
In addition, it should be noted that the specific business arrangements for the implementation of the index blowing mechanism of the three exchanges are slightly different. Investors should pay attention to the business questions and answers issued by the exchange and related announcements.
Index and Fuse Mechanism Business Q & A 1. Which types of transactions and related businesses have an impact on index melting?
When the fuse is triggered, the bidding transactions of stocks and stocks are suspended. Non-trading businesses such as new share issuance, allotment, voting, etc. can be declared normally. If the index is blown until 15:00, the relevant securities will not be traded on the same day.
Due to the differences in technical systems, there are slightly different aspects of the implementation of the fuse product range and related business impacts. First, the Shanghai Stock Exchange will suspend the auction of stocks and related products, including A shares, B shares, and funds (gold trading type). Open-end securities investment funds, transactional money market funds, bond trading open-end index funds, convertible corporate bonds and exchangeable corporate bonds.
For the loan of Rongrongtong Securities, if the index is blown before 15:00, the transfer of the securities of the Rongtong Securities on the same day, the matching transaction, and the return of the securities will be carried out normally; if the index blows to 15:00, the relevant securities will no longer be received after the fuse is blown. For the transfer and borrowing of the securities, the declarations accepted before the fuse are still matched and the securities that should be returned on the same day shall be processed according to the suspension of the securities, and the return will be postponed to the next trading day.
Second, the securities exchanges implemented by the Shenzhen Stock Exchange are basically the same as those of the Shanghai Stock Exchange. The only difference is that the auction transactions of gold trading open-end securities investment funds, transactional money market funds, and bond-traded open-end index funds will be suspended at the same time. After going online, it will be adjusted to be consistent with the Shanghai Stock Exchange.
For the loan of Rongrongtong Securities, if the index is melted before 15:00, the relevant securities transfer and securities lending transactions and return will be carried out normally; if the index blows to 15:00, the securities will be dealt with in the suspension mode, and the relevant securities will not be transferred on the same day. For securities lending transactions, the securities that should be returned on the same day will be repaid to the next trading day. Third, CICC will suspend all product trading of stock index futures (including CSI 300, CSI 500 and SSE 50 stock index futures), but the government bond futures trading will proceed normally. Specifically, the relevant announcements issued by the exchange shall prevail.
2. In what way does the index resume trading after the end of the index blow?
For the Shanghai Stock Exchange and the Shenzhen Stock Exchange, for the expiration of the index that ended before 15:00, after the fuse is over, the accepted bid will be aggregated and combined, and then entered into the bidding transaction stage. For CICC, the assembly bidding declaration is made 3 minutes before the expiration of the index fuse. Immediately after the end of the auction bidding declaration, the aggregate bidding order is merged and then transferred to the continuous bidding transaction.
3. Can an investor declare or withdraw a declaration during an index blow?
There are differences between the three exchanges in terms of whether they can be declared and withdrawn during the expiration of the index. The first is the Shanghai Stock Exchange. If the index is blown before 15:00, the declaration can be continued during the fuse period, and the declaration can be cancelled. If the index blows until the end of 15:00, only the cancellation report will be accepted during the fuse period, and no other declarations will be accepted.
Second, during the period of the Shenzhen Stock Exchange Index, investors can declare or cancel the declaration. The third is the China Gold Institute. If the CSI 300 Index triggers the 5% threshold, the relevant contract enters the 12-minute fuse period, the trading is suspended during the fuse, and the order declaration and cancellation are not accepted. After the end of the fuse period, the 3-minute auction bidding declaration time is entered, and the order is declared and cancelled. . If the CSI 300 Index triggers the 7% threshold, or if the relevant contract triggers the 5% threshold within 15 minutes before the market closes, the relevant contract will be suspended until the market closes on the same day, and the order declaration and cancellation will not be accepted.
In addition, if the index blows across the midday break, the relevant arrangements for the three exchanges are consistent with the existing rest arrangements, and investors cannot file and cancel the declaration during the lunch break.
4. Is the reference transaction price revealed during the index blow?
During the exponential fuse period and during the aggregate bidding period after the end of the fuse, the three exchanges did not reveal the virtual reference price, the virtual matching amount, and the virtual unmatched amount.
5. Is the fund's purchase redemption affected when the fuse is triggered?
The relevant announcement issued by the fund manager shall prevail.
6. What effect does the index fuse mechanism have on Shanghai-Hong Kong Stock Connect?
The joint announcement issued on April 10, 2014 stipulates the “home court principleâ€, that is, “the transaction settlement activities comply with the regulations and business rules of the market where the transaction settlement occursâ€. According to this, the following arrangements are proposed: First, regarding Shanghai Stock Connect. Shanghai Stock Connect applies the relevant rules of the Mainland index melting mechanism. When the A-share market triggers the index melting threshold, the transactions between the mainland investors and the Shanghai Stock Connect investors in the mainland market are suspended; the Shanghai stocks are closed to investors, and the declarations are cancelled. Arrange and implement the relevant provisions of the Mainland Index Fuse Mechanism. The second is about Hong Kong stocks. After the A-share triggers the index fuse mechanism, the Hong Kong Stock Connect business is not affected.
7. What are the special arrangements for the index blow on the delivery date of the stock index futures contract?
At present, the delivery settlement price of domestic stock index futures is calculated based on the arithmetic average price of the last two hours of the stock index index delivery date. To ensure the normal delivery of stock index futures, the index blow is not implemented after the market opening of the stock index futures at 13:00, including There are two situations: one is that the index fuse is no longer implemented between 13:00 and 15:00; the other is that the index fuse that is implemented in the morning resumes trading at 13:00 at the latest.
8. Why adjust the trading hours of stock index futures contracts?
CICC adjusted the opening and closing time of stock index futures, keeping pace with the spot market. The collective bidding time for stock index futures is 9:25-9:30 per trading day, and the continuous bid trading time is 9:30-11 per trading day: 30 and 13:00-15:00. The main purpose of adjusting the trading hours of stock index futures contracts is to be consistent with the spot stock market.
9. After the introduction of the exponential fuse mechanism, what is the change in the range of the stock index futures contract?
The daily price fluctuation limit of stock index futures contracts refers to the daily price fluctuation limit, which is adjusted to ±7% from ±10% of the settlement price of the previous trading day. The limit of the last trading day of the contract is still ±20% of the settlement price of the previous trading day. When the CSI 300 Index closed up or fell less than 5% from the previous trading day, the price fluctuation of the stock index futures contract was limited to ±5% of the settlement price of the previous trading day; when the CSI 300 Index closed compared with the previous trading day If the first rise or fall reaches or exceeds 5%, the stock index futures contract will melt, and after the transaction is resumed, the maximum daily fluctuation limit of the corresponding direction of the contract increase or decrease will take effect immediately.
10. How is the settlement price of the stock index futures contract calculated when the fuse is triggered?
The settlement price of the day refers to the weighted average price of the transaction price in a certain period of time according to the volume of the transaction. If the fuse is broken during this period, the auction bidding declaration or the transaction is suspended, the corresponding time period will be forwarded after deducting the fuse, the assembly bidding declaration and the suspension of the trading time.
11. What other issues do investors need to pay special attention to and understand about the exponential fuse mechanism?
Investors also need to pay special attention to the following aspects of the index fuse mechanism: First, the opening set auction triggers the fuse, and the index will be blown according to the trigger situation from 9:30. Second, for the non-share index futures contract delivery date, the morning fuse time is insufficient, and after the market opens in the afternoon, the lunch break time is not included in the blow time.
Third, the fuse is closed until 15:00, and the closing price of the relevant securities is the weighted average price (including the last transaction) of all the transactions one minute before the last transaction of the securities on the same day. The previous closing price was the closing price of the day. Fourth, the Shenzhen Stock Exchange triggered the fuse during the closing auction from 14:57 to 15:00, and did not implement the index blow. Fifth, during the expiration of the index, the resumption of the relevant securities will be postponed until the expiration of the index.
When the fuse is triggered, the exchange will post relevant announcements on the website to inform the time to blow down the transaction or suspend the transaction. Investors need to pay close attention to the information published on the exchange website in order to prepare for the corresponding business.
Non-standard screws refer to screws that are not manufactured according to the unified industrial standards and specifications issued by the state, but are designed and manufactured according to their own needs. The specification of non-standard Screw is not within the national standard, and its appearance or performance is not within the national equipment product catalog. It is a special size, and is generally used for the application of less parts.
Non-Standard Custom Bolts,Non Standard Custom Bolts,Non-Standard Customized Bolt,Non Standard Customized Bolt
Jiangsu Jiajie Special Screw Co., Ltd , https://www.jiajiescrewcompany.com