On May 29th, the Shanghai Stock Exchange introduced the next reform direction of the Science and Technology Board in an article published: In terms of “system supply”, it will be launched in due course The market maker system and research introduce a single T+0 transaction to ensure market liquidity and thus ensure the normal realization of the price discovery function.
At present, the science and technology board implements the T+1 trading system. The popular understanding is that today’s stocks can only be sold tomorrow after buying stocks. The so-called “single T+0” refers to the sale on the same day after the purchase is allowed, but only one operation is allowed, rather than unlimited sales within a single day.
For the introduction of this trading system, many experts interviewed said that this will help to activate the market and promote the price discovery function of the Science and Technology Board. Judging from the operation of the Science and Technology Board, institutional investors account for a relatively high proportion, transactions are stable and orderly, and the conditions for promoting the T+0 system reform are met. Many quantitative strategy private equity institutions also expressed to surging journalists that they welcome the implementation of this mechanism reform.
According to surging news reporters, at present, the single T+0 system is still in the research stage, and there is no clear timetable for the Shanghai Stock Exchange.
It is convenient for the Science and Technology Board to take the lead in implementing T+0
T+0, that is, intraday trading, is not new in the A-share market thing. In fact, when the capital market was just born, A-shares had also implemented this trading mechanism. In December 1992, the Shanghai Stock Exchange first introduced the T+0 system. In November 1993, the Shenzhen Stock Exchange also implemented the T+0 system. However, after two years of implementation, the T+0 trading system has withdrawn from the stage of history, and the T+1 trading system has been in use to this day.
A number of securities industry practitioners revealed to the surging news reporter that during the preparation of the establishment of the Science and Technology Board, the discussion about T+0 was very enthusiastic. There are also many professionals in the industry who recommend the implementation of the T+0 system, but this proposal was not adopted by the regulatory authorities at the time.
The Shanghai Stock Exchange said at the time that there had been calls for the implementation of the T+0 trading mechanism in China, but there were also different opinions. After a comprehensive evaluation, in accordance with the principle of steady start and step by step,The investor-led structure brings high turnover rates and herding effects. On the whole, the implementation of T+0 is conducive to my country’s integration with the international capital market, and it can also promote the matching of periods and achieve more effective risk hedging. The new securities law has laid a system foundation for increasing fraud penalties and protecting the interests of small and medium investors, and has created good conditions for the T+0 system to be further implemented.