Why is Ding Feng Automobile Group forced to close its position?

The crash of Ding Feng Group was related to the forced liquidation of 300 million shares of the controlling shareholder. According to the information disclosed in the inquiry, forced liquidation refers to the situation that the platform will force the sale when the subject matter purchased by the investor loses money and reaches a certain position. In the stock market, investors carry out margin financing and securities lending operations. When the investor's position loss touches the liquidation line and no margin is added, the securities company will carry out compulsory liquidation, and the money owed to the broker after compulsory liquidation needs to be repaid by the investor with its own assets, otherwise it will face legal recourse.