---
title: Stock Lending, Retail Trading, and Liquidity
url: https://www.ml-quant.com/papers/ssrn/5057995/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-09-26
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 5057995
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5057995
featured: 2024-12-18
citations: unknown
topic: Trading, Microstructure & Execution
---


# Stock Lending, Retail Trading, and Liquidity

The halt of the security relending service in China resulted in an overvaluation of shortable stocks and increased liquidity due to more retail trading.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5057995
- Identifier: SSRN 5057995
- Released: 2024-12-16
- First featured: Quant Letter No. 79 (2024-12-18): https://www.ml-quant.com/issues/2024-12-18/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Trading, Microstructure & Execution

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- [Stock Trading Gamification Effects](https://www.ml-quant.com/papers/ssrn/4851630/): Gamification of stock trading can both harm retail traders by reducing returns and increasing volatility, and benefit the market by lowering costs and risks for liquidity providers.
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