A stock (such as Agricultural Bank of China) is locked up and there is no profit. Why would someone throw it? Who would do that?

Reason 1: cutting meat. I think the price will fall again, but I'm losing less now and more in the future.

Reason 2: Washing dishes. After washing away a large number of retail investors, institutions can raise funds at relatively low prices, thus boosting shipping profits.

Reason three: smashing dishes. Institutions can short the futures index and then smash the heavyweights, causing the stock index to plummet and saving money on the futures index.

Reason four: profit taking. The actual cost is much lower than lz thought.

Such as the Agricultural Bank of China.

We can assume that the price of ABC has fluctuated between 2.68 and 2.69 for 20 consecutive trading days. Suppose the institution buys at 2.68 and sells at 2.69. Suppose the transaction cost is 0.08% (big customers may be lower)

Then the actual cost of 2.68 buying is 2.682 1, the actual income of 2.69 selling is 2.6852 (excluding stamp duty), and the bid-ask spread per share is 0.003. That is to say, every hand (100 shares) has a profit of 0.3 every day.

If you trade 1000 lots every day for 20 consecutive days, the profit is 0.3 * 1000 * 0 = 6000, the actual investment is about 270,000, and the profit rate on the 20th day is 6000/270,000 =2.22%. The actual cost per share after 20 days is 2.6 197.