Although the title of this Bloomberg report is pessimistic, the content is optimistic.
The core of the article emphasizes that the arbitrage transaction involves 1.1 trillion yuan, and now three-quarters of it has been normalized. The subtext is that the potential threat to the risk market caused by the economic recession and the yen interest rate problem last week has subsided.
Sorry, in my humble opinion, I think the 1.1 trillion yuan involved may not be so small, and in just one week, and under the big fluctuations within a few days, three-quarters of the positions were closed, which is a bit too optimistic.
Recent reports have been used to maintain stability, emphasizing that high stock market volatility is an opportunity for speculators, and emphasizing that arbitrage risks have been reduced after a large number of positions have been closed. I really think things may not be that simple.
Under the big fluctuations at the beginning of last week, there was more trampling. I don’t believe that the huge amount of capital can leave the market. On the contrary, the frequent stabilization now makes me feel that they are withdrawing.
