Analysis On The Defects Of China 's Stock Market Transaction System And The Choice Of Reform Path

China’s stock markets have been developing steadily since the birth of the 1990 s, playing an increasingly important role in the national economy. But at the same time, immature market trading style also widely criticized. Light value, the concept of heavy, huge volatility than 20 years has been a prominent feature of China’s stock market, and getting worse. The second decade of the 21 st century, as China’s stock market products from a single species to multi-species cross-regional development, the majority of investors and regulators increasingly urgent need for more in-depth study on the laws governing the operation of the market, and thus the development of relevant policies and make better investment decisions.This article abandoned the traditional economics of "God perspective", is about economics as a natural science that which bears the same mathematical physics and not the people will transfer precise law attempts from "participating in perspective", firstly on the stock market in a variety of basic elements of research conducted in-depth discussion, and then re-elaborated universal classic price discovery process and made dependent on the characteristics of our trading system price manipulation process, the final analysis by a variety of alternative price movement than reasonable explanation of China’s stock market run-style causes and appropriate policy recommendations for reform.This paper argues that the stock market-style competition run by a variety of price movement with each other, replace each other, the formation of joint action. Over a longer period of time, the strength of the different levels of price movement, the market determines the long-term running style and the investment climate. Trading System(microscopic structure factors) for the price movement has played a profound influence on the basis, determineed whether it can be effect. China’s stock market is due to set price limits range is too small and T+1 settlement and other improper trading system, prompting the formation of a unique price-fixing process. This process has a cost, and prone to strong profitability and other characteristics, so widely used by investors, and largely replaced the relatively poor profitability classic price discovery process, and this preference for final China’s stock market has led to the formation of all the bad run style previously mentioned. Finally, only targeted improvements adverse trading system, such as circuit breakers and gradually increase the volatility of circuit breakers or cancellation system to allow rotation T+0 trading, the stock market can change our environment for investment and profit model fundamentally promote more healthy and sustainable development.