Who exactly is the beneficiary of "T+1"?

By Brown Clendenin

One of the most unacceptable trading system in China equity market is "T+1”.That is to say, stocks or funds purchased by investors cannot be sold on the same day, only be sold after transfer on the next day.

In fact, the ecosystem of China equity market is increasingly worsening. Large institutions deploy the capital advantage, capital threshold advantage, stock index futures and more derivative which are all under T+0”to profit by short selling. On the flip side, retail investors cannot avoid the risks and only be exploited by large institutions. Such unequal trading system in the same market is so unfair for retail investors. It is unparalleled in the world.

The authorities of equity market often talk up that what the trading system of "T+1" protects is the interest of retail investors. But retail investors cannot sell the stocks or funds purchased on the same day, no matter they are up or down. And investors have to sell the stocks or funds on the second day, no matter they are up or down. Investors can only take the trading risks by themselves.

So Who exactly is the benefiary of ""T+1"? It is self-evident.

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