Research On The Impact Of Securities Investment Fund Holdings′ Changes On Chinese Stock Market Volatility

In the developed capital market represented by the United States, the investment funds in a dominate position. Investment fund is managed by professional investment fund managers, are believed to reduce the investment risk, have the effect of stability of the stock market. To control the market risks, improve the investment main body structure, our country is trying to promote healthy development of securities investment funds. But reform is not able to complete in a short time. Influenced by market speculation mood, fund managers’ behavior may be more irrational, adding market risk.Investment fund whether can have a good effect on the stock market or not? This paper tries to find out.First, this paper introduced the relevant theories of securities investment funds and stocks, mainly includes: fund concept, classification, operation mode, as well as the stock market concept, function, volatility characteristics, etc. This part laid a theoretical basis for the following research fund changes impact on share price volatility.Secondly, this part analyzed fund and stock market development present situation and existing problems in our country, in recent years, the fund market has a rapid development in our country, it reflects a growing fund size and a rich fund type, as well as a more perfect fund supervision system etc. But at the same time, with the rapid development of stock market, the stock price fluctuates rapidly.Once again, the article studied the relationship between the securities investment fund and stock market volatility from the index data and the stock data two aspects. In the aspect of index data, through the granger causality test, found that the Shanghai composite index and Shanghai stock index fund long-term stable relationship, and the Shanghai index fund is the granger reason of the composite. At the stock data, the first dynamic panel data model is set up, is to share price volatility, as explained variable,fund ownership change, turnover rate, circulation of stock market, the stock volatility as explanatory variables were analyzed, and concluded that throughout the study period, the fund shareholding increase slows down the stock market volatility Then using the paneldata model are realized during the study, concluded that there were 15 quarters in 24 show that the fund can reduce the volatility of the stock market.Finally, according to the above research conclusion, this paper put forward some reasons about why the securities investment fund can not stable stock market, including environmental defects in the securities market, the immature of securities investment fund market, the lack of high quality investment object, etc. In view of the existing problems, this paper puts forward the related policy suggestions to develop the securities investment fund market and stock market.