The company under Northeast Securities Co.Ltd(000686) was investigated for alleged manipulation of futures contracts. On December 30, the share price of Northeast Securities Co.Ltd(000686) closed down 3.29%, with the largest intraday decline of more than 7%, which made the shareholders holding the company’s shares step on the thunder. The illegal acts of its companies directly infringe on the interests of the people. Such bad behavior should compensate investors.
It is reasonable to say that futures companies cannot carry out proprietary business, which is different from securities companies, but it is really surprising that Northeast Securities Co.Ltd(000686) companies can manipulate futures contracts.
It may be that the employees of securities companies still operate in the business mode of securities companies after they arrive at the futures company, but the scale of the futures market is far smaller than that of the securities market, and the trading varieties are much less than that of the stock market. Therefore, manipulating a contract is particularly eye-catching. The behavior that might have been ignored in the stock market comes to the futures market, It will attract the attention of investors and regulators.
“The CSRC decided to file a case for suspected manipulation of futures contracts.” Fine words, manipulating a futures contract may mean not manipulating a futures variety. To tell the truth, it is difficult to manipulate a futures variety in the futures market. After all, there is no upper limit on the circulation of futures trading. If a sufficiently outrageous price is given, there will naturally be countless counterparties looking for transactions. Therefore, the manipulation of the futures market often needs the cooperation of fundamentals, even if it is artificially distorted fundamentals, it also needs a certain degree of cooperation, Only in this way can a trend be formed, and with this cooperation of fundamentals, it is difficult to be characterized as manipulation.
According to this column, Northeast Securities Co.Ltd(000686) companies should not manipulate the main contract, because if they manipulate the main contract, it is no different from manipulating a variety. Therefore, this column believes that the so-called manipulation contract should be a non main contract with a small position in the long term. If this is the case, Northeast Securities Co.Ltd(000686) companies have few opponents through this manipulation, which must have entrapped some retail investors who do not know the truth. The futures people were killed and the investors were also trapped. It is too bad in nature.
In the futures market, the purpose of price manipulation is to let investors buy at a high level or sell at a low level, but if the quantity is small, then it doesn’t make much sense. Of course, another situation is to protect its book position, that is, the manipulator has reversed the direction in the process of futures investment, and the main contract has risen or fallen, but the manipulator holds the forward contract, so it uses the capital advantage to control its heavy position contract, so as to stabilize the price or reduce the fluctuation, so as to avoid being required to close the position. However, as the price difference between this contract and the main contract becomes larger and larger, arbitragers will enter the market for arbitrage, and operators will continue to increase their positions to prevent price return, so risks begin to accumulate. If strong external forces promote price return in the future, then operators will suffer heavy losses.
Therefore, according to the analysis in this column, when the company under Northeast Securities Co.Ltd(000686) is found to have manipulated the contract, perhaps its position has accumulated a large investment risk, and this risk is likely to be reflected in the fourth quarter performance of Northeast Securities Co.Ltd(000686) . Therefore, the shareholders of Northeast Securities Co.Ltd(000686) sell their shares not only because of filing a case for investigation, but also because the performance of Northeast Securities Co.Ltd(000686) in 2021 will be affected.
(Beijing business daily)
