The market-making era of the Science and Technology Innovation Board has been launched, which is undoubtedly a great benefit to the securities sector; after all, the market-making era of the Science and Technology Innovation Board has come very quickly. From the solicitation of opinions on the market-making era in May this year to today, it has been implemented, which is very beneficial to the Science and Technology Innovation Board. Both the GEM and securities companies are beneficial.
I believe that many investors are still unclear about what it means to introduce a "market making mechanism" on the Science and Technology Innovation Board? What is the role of this market making mechanism? What impact will it have on the stock market? Will the securities sector take advantage of this good news to explode? Let’s analyze these confusions below.
What is a market maker?
In fact, the market maker is simply understood as the middleman of the stock price, and the securities company is the middleman, the middleman between the buyers and sellers participating in the bidding.
For example, when a certain science and technology innovation board bids for in the late trading of , the securities company, as an intermediary, sets a price according to the market. As long as the buy and sell orders participating in the late trading auction can be matched, the securities company, as an intermediary, relies on Earn profit by buying and selling the difference.
For example, the middleman sets 10 yuan as the market price. Anyone who participates in the bidding and buying and selling near 10 can make a deal, and as a middleman, he relies on the comprehensive price difference of around 10 yuan to make profits.
What impact do market makers have on the stock market?
market makers conduct pilot projects on the Science and Technology Innovation Board. After the pilot, as long as this mechanism matures, it will definitely be gradually promoted and implemented in the city in the future. It will also have a long-term impact on the stock market, which means that the A-share mechanism is more mature. . In addition to having a long-term impact on the stock market,
market makers are also beneficial to the Science and Technology Innovation Board and the securities sector in the short term, directly increasing the activity of the Science and Technology Innovation Board and increasing the business income of securities companies.
After the introduction of the market-making mechanism on the Science and Technology Innovation Board, it will definitely increase the trading activity of the Science and Technology Innovation Board, especially the activity during late bidding. For the Science and Technology Innovation Board, having activity will definitely be beneficial to long-term development.
But the key still depends on the intermediaries, that is, securities companies cannot use the market-making mechanism to obtain interest from it, regardless of the interests of individual investors, and prevent intermediaries from using the market-making mechanism to speculate or control the market. This is the drawback of the market-making mechanism. The implementation of the
market making mechanism means that securities companies have new business, which will bring new business income to securities companies, which is definitely a great benefit to securities companies; but let’s be clear, not all securities companies are eligible to participate in market making. , currently only 14 securities companies have applied for market capitalization qualifications, which is a structural benefit to the securities sector.
Will securities "explode" next week?
We have briefly understood what market makers are and their impact on the stock market, the Science and Technology Innovation Board and securities companies. With the implementation of market makers, will the securities sector really "explode" next week?
There is a big question mark as to whether the securities sector will really "explode" next week. After all, although market makers are good for securities, this benefit is very limited. Therefore, it is certain that securities will not explode next week. I hope retail investors We cannot have too high expectations. The greater the hope, the greater the disappointment.
No. 1: The market maker mechanism has announced its expectations in May, which means that this benefit has been realized in advance. The brokerage industry has ushered in a wave of periodic market conditions in order to realize the benefit. At present, the benefit has been implemented, and it may not still be a benefit for securities. After the good comes to light, the bad comes.
Second: There is no doubt that market makers are good for securities, but this benefit is structural. According to the threshold of market makers, currently only 14 large and medium-sized securities companies are eligible to participate in this business. The benefits are all structural. Yes, we cannot treat the entire securities sector as it will stimulate an explosion.
Third: The securities sector currently has no conditions for an outbreak. On the contrary, the securities sector is still in a weak and volatile decline, and is currently in a state of adjustment; which means that securities trends, funds and popularity are not yet able to stimulate the outbreak of securities firms.
Final summary
The introduction of a market-making mechanism by the Science and Technology Innovation Board will be beneficial to the stock market and the Science and Technology Innovation Board in the long run. This is for sure, but the benefit to the securities sector is limited. Next week, the securities sector wants to take advantage of this benefit to explode a wave of market prices. This possibility is extremely low, and we hope that all investors will view the benefits of the market-making mechanism rationally.
