China Needs to be on the Alert for High-frequency Trading Impact Stock Market
ANBOUND
According to Reuters, Chinese derivatives market has been developing rapidly and "high-frequency trading" has shown up in A-share market. ANBOUND research team believes that China should be on the alert for high-frequency trading impacting stock market. In western countries, “quick-trading” can be regarded as a derivative to avoid risks. However, in China, it might become a way for speculation and hurting the retail. With stock market keeps rising, the bubblization is increasingly serious. China needs to avoid black swan event which triggers panic. High-frequency trading is a destroyer of stock market investors. Once things go wrong, it will lead to market panic and cause sharp fall.