How to view the quant trading and stock trading volume surge in China market objectively?
No efficient securities lending shorting, the longs can control most of shares relying on funds power, then get the asset pricing power, such as the hoarding in commodities futures. The Maotai-like stocks in recent two years is one typical example.
The dominant quant strategies in current market, actually most of them belongs to smart beta. The volatility has obvious exposure at the factors of small caps and growth. And with the quant asset amount growing, they will have more pricing power in small caps stocks.
No matter index enhancement strategy or market neutral funds plus T+0 strategy, actually, these strategies rely largely on the asset amount of stocks holdings， or due to the high trading turnover， owned a large share of the available shares of securities companies. So they have the congenital advantages at intraday range trade or short individual stock.It atucally is investors depending on their asset amount , by pass the restrictions of A-share T+1 trading system and inefficient shorting system, thus get the advantage than other investors.