My Fintech Empire

Chapter 1555 [Introducing a single T+0 mechanism in the SGX market? ]

After receiving the drones from Kunpeng Technology, Xiaofa finally withstood the offensive of Blue Fox International. Otherwise, he would not have been able to withstand it. Even if he could withstand it, he would have to pay a huge price. Xiaofa also realized the importance of drones in modern warfare.

In fact, Xiaofa is not in an advantageous position now, but if it were not for the drones provided by Kunpeng, Xiaofa might have been driven out of Africa by Blue Fox International.

Amei also saw it, and the whole world saw it.

Now, more than 85% of the world's drones, including drone accessories, are manufactured by the Eastern powers. This proportion is exaggerated even for the locals, and it is both cheap and has good performance. There is even such a saying on the Internet: DJI is the first choice for commercial use, and Kunpeng is the first choice for fighting.

Xiaofa and Blue Fox International have been fighting each other in West Africa for more than a year. Amei also realized that he had to get these drones, otherwise he would not be able to play in the future.

But at this time, A-Mei discovered an embarrassing fact. If he wanted to get drones, he had to buy drones from Dongda. But A-Mei found that he couldn't produce affordable drones, which made it difficult to hold on...

Moreover, even if the export price increased by 25%, Dongda's drones were still affordable.

But the problem is that A-Mei now wants to get a large number of drones, so he released DJI and Kunpeng and other drone manufacturers from Dongda from the blacklist, and found a way out for himself, saying that it was to ease the relationship.

In the early years, A-Mei blacklisted all these companies in order to suppress Dongda's development of drones, especially Kunpeng Technology, as a galaxy enterprise, which was blacklisted thoroughly, blacked to the end, and suppressed comprehensively, preventing Western companies from buying Kunpeng Technology's drones.

But now it's really fragrant. How many does A-Mei want to buy this time?

The answer is that he wants to purchase 30 million small drones, and decided to officially release Kunpeng Technology and other drone companies from the blacklist on July 1.

When the news came out, the outside world was actually quite confused. The recent operations of Laomei are becoming more and more mysterious. The positive policies they issued are fighting each other. The other side is still shouting that it is not tough enough, but this side says that it will ease up, as if it has schizophrenia.

In fact, this also indirectly shows that there are great differences and confusion within Amei.

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After the weekend, the time entered Monday, June 1.

Today, the A-share market opened, and the three major stock indexes showed a unilateral upward trend. On the SGX market, the drone "duo" DJI and Kunpeng Technology opened high and went high in the morning, and they hit the daily limit in the first half an hour before the opening.

It is not surprising that these two stocks hit the daily limit. Such good news came out during the weekend. Amei plans to purchase 30 million drones, and for this purpose, it also released these two companies from the blacklist.

Stimulated by this news, it also led to a surge in the consumer electronics concept.

The SGX 50 Index reversed the previous correction and returned to the 6,000-point mark again, and reached a new high since the staged bottom.

In the afternoon, major financial concept stocks such as securities companies and futures also rose sharply. At noon, a news came out that a source said that the management of the Singapore Exchange is studying the introduction of a T+1 trading mechanism for institutional investors and a single T+0 trading mechanism for individual investors.

As soon as this news came out, financial concepts strengthened across the board in the afternoon. The securities sector once rose by more than 5 percentage points during the session. Securities stocks such as Zhongyin Securities, Guojin Securities, and Hongta Securities all rose to the daily limit.

At 15:00 in the afternoon, the three major A-share indices all walked out of the long positive line with large volume today. The SGX 50 Index rose by +2.55% to 6058.16 points; the Shanghai Composite Index rose by +2.21% to 2915.43 points; the Shenzhen Component Index rose by +3.31% to 11102.15 points.

The three major trading markets had a total turnover of 1627.4 billion, of which the SGX market had 865.8 billion, an increase of 160 billion compared with the previous trading day.

The current trading mechanism implemented by the SGX market is the institutional T+3 system and the retail T+1 system.

According to rumors, it is equivalent to allowing institutions to reduce the restrictions of two trading days, while retail investors or individual small and medium-sized investors will have a T+0 trading opportunity within the day.

The so-called introduction of a single T+0 trading mechanism means that retail investors have two opportunities to buy and one opportunity to sell within the day.

For example, a retail investor buys a stock on the same day and then sells it on the same day. The freed funds can be used to buy again, but the second purchase cannot be sold again on the same day. This is a single T+0 trading mechanism.

If the SGX market implements this new trading mechanism, it means that the advantage of funds taking the lead is gone. The current T+1 trading mechanism still has funds taking the lead today to gamble on the high opening premium of the next day.

To put it bluntly, it means buying today and dumping it on the receiver tomorrow.

If a single T+0 trading mechanism is implemented, those who are unlucky enough to take over the market and get hit the next day will still have a chance to correct their mistakes and stop losses in time, so they won’t suffer a big loss.

On the other hand, it can also restrain the funds that took the lead yesterday from going too far. If the price is forced to rise, the funds that bought it on the same day may be sold directly, so they will not dare to be too unrestrained.

In this way, it can also play a role in stabilizing market fluctuations and avoid violent fluctuations.

This news is indeed not groundless. Fang Hong intends to do so. He is still improving the market mechanism of the SGX in a step-by-step manner according to local conditions.

We should neither stand still nor go to extremes.

If we blindly copy the trading mechanism of the US stock market, which has no price limit and unlimited T+0, it will inevitably fail to adapt to the local conditions.

There are also such trading products in the A-share market, such as unlimited T+0 and no price limit within the day.

The current convertible bond market is like this. The convertible bond market fluctuated violently in March this year. For example, Henghe convertible bonds soared by more than 70 percentage points within a day, and continued to soar by 40 points the next day, and then fell by 15 percentage points within the day.

With such a violent short-term trend, some people can double their money within a day, but most people will be cut in half within a day, and even cut in half again.

The original intention of T+0 should be to allow investors to correct errors and stop losses in time, but if there is no restriction, the actual situation will inevitably become unlimited repeated arbitrage within the day, and the function designed to correct errors and stop losses will be lost.

Single T+0 can find a relative balance point, and it is still a single T+0 for retail investors, and institutional funds are still T+1.

In this way, it can avoid the behavior of unlimited repeated arbitrage of funds, and investors also have an opportunity to correct errors and stop losses, and at the same time, it also activates the capital market.

Once the SGX market implements the trading mechanism of institutional T+1 and retail single T+0, the future transaction volume of this market will definitely become normalized, and it is not impossible to reach 2 trillion yuan a day when the volume explodes.

Because there is one more turnover within the day, it is equivalent to doubling the transaction volume.

Although retail investors are not the mainstream in the SGX market, and investors who can buy individual stocks are always a minority, hundreds of millions of retail investors in the A-share market are now indirectly participating in this market through the SGX 50ETF. The trading volume of the six SGX 50ETFs accounts for a considerable proportion in the SGX market.

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