Proceedings of 2025 2nd International Conference on Applied Economics, Management Science and Social Development (AEMSS 2025)

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Research on the Relationship between Short Selling Mechanism and Enterprise Loan

Authors
Rui Zhai1, *
1School of Statistics and Mathematics, Yunnan University of Finance and Economics, Kunming, Yunnan, 650221, China
*Corresponding author. Email: zhairuimm@163.com
Corresponding Author
Rui Zhai
Available Online 7 June 2025.
DOI
10.2991/978-94-6463-752-6_31How to use a DOI?
Keywords
Short mechanism; First order difference method; Business risk; Information risk; Bank credit decision
Abstract

Shanghai and Shenzhen stock markets in China officially launched the trading pilot of margin trading on March 31, 2010, marking the formal introduction of short selling mechanism into China’s capital market. With the implementation of the short-selling mechanism, China’s capital market will usher in major changes, which will help prevent and control the potential financial risks caused by corporate debt defaults.In order to understand the real relationship between the short selling mechanism and the corporate loans, this paper takes the margin financing system implemented in China’s capital market in 2010 as an entry point, adopts the first-order difference method for regression, and systematically tests the influence of the relaxation of short selling constraints on bank credit decisions. It is found that after the short-selling constraint is relaxed, the operating risk and information risk of the target company will change, and a larger amount of credit can be obtained; Banks also tend to issue broad credit policies to target companies and make positive credit decision adjustments.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of 2025 2nd International Conference on Applied Economics, Management Science and Social Development (AEMSS 2025)
Series
Advances in Economics, Business and Management Research
Publication Date
7 June 2025
ISBN
978-94-6463-752-6
ISSN
2352-5428
DOI
10.2991/978-94-6463-752-6_31How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Rui Zhai
PY  - 2025
DA  - 2025/06/07
TI  - Research on the Relationship between Short Selling Mechanism and Enterprise Loan
BT  - Proceedings of 2025 2nd International Conference on Applied Economics, Management Science and Social Development (AEMSS 2025)
PB  - Atlantis Press
SP  - 293
EP  - 300
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-752-6_31
DO  - 10.2991/978-94-6463-752-6_31
ID  - Zhai2025
ER  -