What does it mean to sell stocks by securities lending?

Short selling refers to the business operation of securities companies lending securities to investors for sale. In the stock market, margin trading is a common problem for investors. Whether it is short or otherwise, investors should have a certain understanding of these operations. To a large extent, the increase in the balance of securities lending directly reflects the stock price of the day.

Under normal circumstances, short selling is a classic selling behavior, when investors think that a stock will fall. Investors borrow a corresponding proportion of shares from securities companies and then sell them. In addition, the net selling amount of securities lending refers to the difference between the short selling amount and the repayment amount.

For investors, the net selling amount of securities lending also needs to master certain knowledge points. When the net selling amount of securities lending is negative, it means that the repayment amount of securities lending increases. In this case, investors are optimistic about the stock market, and investors expect that the stock will not continue to fall.

What does short selling mean?

It refers to an operation mode in which an investment user borrows shares from a securities company to sell, buys them after the decline, and then returns them to the securities company in anticipation of a stock decline. At present, there are not many sources of securities in the A-share market, so many stocks cannot be traded by short selling.