The Reaction Of China Stock Market To The Policy And The Evolution Trend

China’s stock market was established later, the development of the market is not matureenough, investors are still irrational. Guide investment in order to maintain market stability,the Government often interfere with the operation of the market. Policy interventions are animportant means of government intervention in the stock market, existing studies have shownthat our stock markets in the policy of the city. However, the effect of the policy intervention,issued what policies to better intervene in the market are not good metrics. Able to measurethe impact of policy interventions on Stock Market Volatility efforts, as well as continuedefforts to impact, a good grasp of policy intervention, the expected results, the interventionmore effective. On this basis, if we can distinguish between different types of policies,respectively, to measure the degree of influence of the different types of policies, as well asthe same type of policy differences on the stock market fluctuations in the different stages ofdevelopment of the stock market, for policy makers in the main in provide the basis forpolicy intervention in the market, but also give investors with a reference response to stockmarket fluctuations.In this paper, based on the theory of efficient markets, the policy as an information flowaffect the stock price, to study the impact of policy on the stock price. First of all, thetraditional model of intervention correction, time variable T represents the intervention modelpolicy as information flow time of the actual impact of the stock market, the modified impactefforts in order to truly reflect the size of the impact of the policy on the stock market. Next,select a number of policy-making body of the most influential China Securities RegulatoryCommission, People’s Bank of China and the Ministry of Finance three selected in theeffectiveness of the policies issued by a greater impact on the stock market several policy:stamp duty, interest rates, deposit reserve ratio and other direct stock market policy therevised intervention model to analyze the various types of policies and the impact of the stockmarket and impact sustainability. The same time, according to the principle of the division ofChina’s stock market is divided into different stages. Finally, the analysis of the empiricalresults, summarizes the policies of the same type in different stages of development of thestock market on the stock market differences, as well as different types of policies in thesame stage of development of the stock market different from the stock market. From similarpolicy differences in the impact of the stock market, found that China’s stock market trendsand laws. At the end of the article, the empirical results, a variety of policy recommendations.