News Analysis: The impact of the U.S. hedge fund liquidation on the market is geometric

　　Xinhua News Agency, New York, March 29 -

　　Xinhua News Agency reporter Liu Yanan and Pan Lijun

　　The US hedge fund Archigos Capital Management’s liquidation incident has recently aroused the attention of investors and regulators around the world.

Analysts said that although the incident caused heavy losses for many financial institutions and triggered stock market volatility, it should not trigger a large-scale financial crisis.

　　On the 26th, Archigos Capital Management was forced to liquidate its position due to its failure to make up the trading margin in a timely manner, resulting in a sharp drop in the stock prices of some companies, including a number of U.S. companies, and some offered to Archigos Capital Management. The financing of international financial giants is expected to suffer greater losses.

　　Japanese securities giant Nomura Holdings announced on the 29th that its US subsidiary may incur huge losses in transactions with US customers on the 26th.

Based on the market price of the day, Nomura Holdings will claim about 220 billion yen (1 U.S. dollar equals 110 yen) from the customer.

Credit Suisse also stated that this incident will have a major impact on its first quarter results this year.

　　Deutsche Bank told the media that the bank sold a large number of shares related to Archigos Capital Management, but the loss was not large.

Morgan Stanley Investment Management Company stated that it did not suffer major losses as a result of the incident.

　　"Nihon Keizai Shimbun" reported that in the context of unprecedented surplus of funds, the liquidation of investors seeking high-risk and high-return directly impacted Japanese securities giants, as many other large international financial institutions also have transactions with Archigos Capital Management. In the future, the losses caused by this incident may further expand.

According to Reuters, as this incident continues to ferment, it is expected that the global banking industry may lose more than 6 billion US dollars as a result.

　　Analysts pointed out that this event may cause financial institutions to reduce the amount of financing provided to funds and other investors, promote the deleveraging of the capital market, and intensify market volatility.

　　Ronnie Neem, chief market analyst at the American financial company Squier, said that the large transactions that occurred due to the liquidation of funds may bring some volatility to the market this week.

　　However, the US market research organization Bespok Investment Group said that it has not yet seen this incident affect the entire financial system.

　　Simon Harvey, an analyst at the foreign exchange dealer Euromoney Trading Corporation, said that the impact of the Archigos Capital Management Incident has so far been limited, and the impact is limited to some companies.

　　The US Securities and Exchange Commission said on the 29th that it has begun to monitor the event of default on the margin of Archigos Capital Management Company and maintain communication with market participants. (Reporter: Liu Chunyan)