The phenomenon of "flash collapse" of individual stocks frequently appears. So, what is the cause of the flash collapse? This article will introduce you to the cause of flash crash. The reasons for the flash crash are as follows: (1) Recently, in addition to Xiong 'an concept stocks and Guangdong-Hong Kong-Macao Greater Bay Area concept stocks, many stocks are still falling, and the market structure is outstanding. Affected by this, the net value of some structured products reaches the vicinity of the liquidation line, and they have to be forced to close their positions, so they will be sold at no cost. (2) Some institutions, especially foreign-funded institutions, have very strict requirements on risk control. For example, when the net product value falls back to a certain level, the company requires that it must lighten its position, which leads institutions to sell large-cap blue-chip stocks with good liquidity at no cost, like Ping An or Industrial Bank in China. (3) Or, an institution's products originally only bought 10% of financial stocks, and other stocks in the portfolio fell, which led to a passive increase in the positions of financial stocks, exceeding the position limit set by the company, and also led to the institution selling financial stocks at no cost. (4) At the moment when the structural market is particularly prominent, xiong'an new area concept stocks have basically risen in recent days, and even the A-share market can be divided into "xiong'an new area concept stocks" and "non-xiong'an new area concept stocks"; After the extinction of xiong'an new area's concept stocks, the relay of Guangdong-Hong Kong-Macao Greater Bay Area's concept stocks in the past two days did not rule out that some institutions sold large-cap blue-chip stocks with good liquidity for the purpose of exchanging positions and shares, in order to prepare bullets and attack popular concept stocks. The above is the whole content of the cause of flash collapse, I hope it will help you! Stay tuned for more stock market news.