Hot Money Has To Be Faced With A Multiple-Choice Question: Regulatory Means.

If we go deep into anatomy, we can easily find that with the advantage of capital, we can attract ordinary retail investors to follow suit by creating brilliant continuous K-line charts, and then pour chips to the retail investors. This is the core technology of getting rich by floating around the edge of frauds and harvesting individual investors as a means of profit.

Analysts believe that the regulatory authorities to some hot money manipulation of the market and other acts of strict supervision of far-reaching significance.

First, over the past few years, the "death squads" mode of the trading board has led to a rampant demon stock. Investors hope to make quick money, disdain fundamental analysis, drive bad money out of good money, and it is difficult for the capital market to allocate resources effectively.

Strict supervision brings about the change of investment concept, which is conducive to giving full play to the function of resource allocation in capital market; secondly, the running around of idle capital makes it possible.

There is a clear "window breaking" effect, and the parties involved in the capital market do not want to stick to the market rules, and the supervision departments begin to purge from the easy to be perceived by the market. It is beneficial to the construction of the A shares and the confidence of the parties involved in the market.

A well-known hot money guy in Zhejiang, because of manipulating a small cap stock, was not only heavily fined by the SFC, but also asked to go to the Shenzhen stock exchange for the purpose of copying the trading rules.

After the matter, the big money investor made up his mind to bid farewell to the short-term operation mode and turn to increase the market.

In September 13, 2016, the China Securities Regulatory Commission announced the latest decision on administrative penalties for handling market cases. Xiao Haidong, a well-known hot money "big guy", was fined 53 million 650 thousand yuan by the SFC for controlling 7 stocks and manipulating 12 stocks and making an illegal profit of 13 million 410 thousand yuan.

The punishment for Xiao Haidong is not just a case.

According to the Shanghai Securities Journal, since the beginning of this year, the CSRC has officially announced 17 cases of manipulating the market, involving 24 individuals and 3 institutions.

In the 17 cases reported, confiscation of illegal gains and fines totaled more than 1 billion 560 million yuan, of which the heaviest individuals were fined 520 million yuan.

Love is that stocks with hot money participation tend to be fierce in the short term. A lot of stories of wealth have been born. The hate is that the stocks that are manipulated are often plunging after inflation, and the probability of losing money in hasty participation is far greater than that of making money.

Since last year, with the further normalization, refinement and specialization of market regulation, the once boundless floating capital traders have been feeling the chill of their bones.

Is it going to be a continuation of the crime of going against the wind? Or is it going to quit? Or a difficult pition to survive? It has become a multiple choice problem for all hot money.

In the case of Xiao Haidong's manipulation of the market, the regulatory authorities compared the facts of the 7 accounts in terms of the source and whereabouts of each other's funds, the trading addresses entrusted to them under the securities account, as well as the elements of Xiao Haidong's entry and exit records and flight information, and so on, and grasped when and when Xiao Haidong manipulated the 12 stocks.

Mastery of information is like seeing with one's own eyes.

Lao Wu also admitted by reporters that he has been in the A market for more than 10 years and has faced a real challenge this year.

Lao Wu is a super customer of a brokerage business department in Shenzhen. It has billions of money and likes short term high frequency trading. He has a large house in the sales department, specially employed four young traders.

Lao Wu never pays attention to fundamentals. In the past years, his techniques are simple and crude, but very effective: he pulls up trading at the end of the day, and leaves a few more points on the second day.

Relying on this approach, Lao Wu every round of market returns are not bad, in 2015 rose, it is several times earnings.

But this year, Lao Wu's road to making money has been blocked.

"As long as the paction is delayed, the business department will call second days to inform the exchange that the regulatory letter has arrived.

There are even several times that I have received a notice that the account is restricted, only to be bought and sold, and even if the day before yesterday was pulled up, it would be hard to make a white effort.

Lao Wu said frankly that after several regulatory concerns, he has been disheartened for the time being. He does not want to operate in the short term.

Lao Wu's statement shows many common ideas of idle capital traders. The normalization and refinement of investment regulation in the two tier market are increasingly strengthened, making the "money raising and death squads" money making mode unsustainable.

According to the head of a brokerage business division, at present, according to the seriousness of the violation, the exchange will issue letters of concern, warning letters and letters of restriction. Once the short-term funds are strong enough to pull the movements of the stock prices, they will attract regulatory concerns. If they do not act willfully, they will be faced with the possibility of being blocked. If the violation is serious, they will even be placed on file for investigation.

The above sources also revealed that the exchange carried out dynamic monitoring of disk through multiple indicators, as long as a certain

The stock price movements will soon find the relevant accounts of the short term funds, and automatically send the letter to the brokerage headquarters where the account is located, and notify the business department by the brokerage headquarters, and notify the relevant individuals by the sales department.

In the past, after the stock movements were warned or restricted, hot money often changed their waistcoat accounts, and large scale hot money accounts for up to several or even more than ten items. These related accounts often come from relatives and friends.

However, judging from the information disclosed in the recent administrative penalty decision published by the SFC in handling market cases, it is clear to the regulators that what accounts are used by the idle money trader, how to pfer funds and how to deal with them.

We hope to cover up the fact that the market manipulation is covered by the vest account.

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"The regulatory authorities are sorting out the list of the most retail investors, and have screened the related system accounts of a number of cattle scattered representatives and their relatives. Later, the cattle scattered list will be further deepened and improved, and Research on it should be strengthened to strengthen suspicious account monitoring."

A person close to the regulatory authorities revealed.

Chen Yun, general manager of Xu Cheng asset, said: "in the face of monitoring big data, everything is pparent. At present, the regulatory authorities are very sharp means, such as IP address, MAC address, call records, travel records, etc., can identify the relationship between accounts.

Now the regulatory authorities are very determined and aggressive in combating illegal activities such as market manipulation, and the idle capital is very dangerous.

However, a senior venture capitalist in Shenzhen concluded that most of the operating modes formed by idle funds in the past decade were no longer effective. No matter whether the trading boards were raised or stopped, events were driven or betting and restructuring were backpacking, they could not follow suit.

As a special group, the hot money characterized by the "daily death squads" began to attract market attention in the late 90s of last century. Xu Xiang is the representative figure. Its operation means to attract retail investors to follow suit by sealing up the way of limit trading. When the second day is high, they will take the opportunity to ship.

After 2014, some new generation of hot money began to rise. Their appetite was bigger, and the object of hunting was no longer small cap stocks. They focused on large cap stocks.

"Large cap stocks contain larger amounts of capital, which is conducive to large and medium capital outflows. In the era of leverage, large households' own funds will rapidly enlarge, and the two or three big outdoor plus leverage funds will be enough to affect the trend of a large share market."

A large family in Shenzhen admits that before 2013, the target of idle capital was small cap stocks, while in 2014 to 2015, the target of hot money turned to a larger stock market with a higher margin of safety.

"Eight times ten thousand times."

In April 16, 2015, the new generation of hot money "Zhao Lao Ge" high-profile posting, "today is a memorable day, the capital has finally reached a great step, thanks to China's shenche!!!"

According to market sources, the net name "Zhao Lao Ge", the operator of the idle money, enlarged the leverage of funds in early April 2015, and made a big profit in the construction of China Central car (time name China Southern car). In just two weeks, the profit was as high as 500 million yuan, and in this short two weeks, China's central car rose sharply, during which 7 trading boards were pulled out, plus other small Yin and Yang, and the share price nearly doubled.

In 2008, "Zhao Lao Ge" was still a student in school. In China, after being hit by a craze for capital, the "85 after" Zhao Chao elder brother's assets had exceeded 2 billion yuan, and the core magic weapon that made him realize the "eight years and ten thousand times" huge profits was the short-term "beating up" mode used by idle money.

In the hubbub, the idle capital represented by Zhao Lao Ge quietly retired. The share price of China Zhong motor has been down all the way to a record high, and its current price is only 1/4 of the historical high.

In the second half of 2015, A shares experienced huge earthquakes.

The problems exposed by the sharp fluctuations of the market are highly valued by the management and respond quickly.

In October 2015, the SFC issued a huge ticket of more than 1 billion yuan for the A stock price manipulator. Some sensitive market people have noticed the change of market supervision style.

Ye Gang, chairman of the seventh Fortune Investment Company, said that the A era was over.

In fact, since the middle of 2015, regulatory authorities have increased the crackdown on market manipulation. Almost every month, there are several administrative penalties for market manipulators. Qu Mingshu, Peng Xu, Ye Fei, Sun Guodong, Ma Xinqi and others are all in the capital market.

Xu Xiang, the representative of the idle capital sector, was arrested in November 2015, which made the hot money group feel chill.

"If Xu Xiang is caught, even if it does not mean the end of the idle capital era, it is also an important vane, and the market style will undergo a significant pformation."

Some senior investors in Shenzhen, who are mainly short-term investors, lamented, "the risk of insider trading and capital advantage affecting stock prices is too great. Big data is everywhere, and we need to think about where to go next."

According to the reporter, a well-known hot money guy in Zhejiang, because of manipulating a small cap stock, was not only heavily fined by the SFC, but also asked to go to the Shenzhen stock exchange for the purpose of copying the trading rules.

After the matter, the big money investor made up his mind to bid farewell to the short-term operation mode and turn to increase the market.