Research On Stock Market Systemic Risk Control In China

China’s stock market has experienced 24 years of history since 1990, but from the market efficiency and the research results on the systemic risk of stock market point of view, is still in the immature stage compared with developed western countries in the stock market, capital allocation function and price discovery function of the stock market of our country has not been brought into full play, and the stock market of our country both from the regulators, the listing Corporation or investors have exposed a lot of problems, which resulted in the Chinese stock market will fluctuate significantly phenomenon, resulting in the stock fell Qi Qi Zhang situation, caused by the difference between the stock there is little or no difference. So, in such a market, investors can avoid blind investment, not very good. Some institutional investors through the advanced investment concepts and analysis methods, but also need to invest a lot of money to construct the portfolio, so as to achieve the purpose of avoiding risk. But for all the fluctuation of stock market reflects the fluctuation is not through the investment portfolio to avoid investment risk, and only through the forecast system of the size of the risk to avoid. The foreign mature stock market is through diversified investment portfolio to avoid systemic risk of the part, but the theory is not feasible in China stock market.With the pace of economic integration is accelerating in China, the annual Chinese listed companies also showed an increasing trend, the expansion of China’s stock markets continue to speed up, China’s stock market tends to be perfect but also for businesses and investors huge returns, but China’s stock market is no longer satisfied with the original investment type single phase, although the country in 2010 April has been the introduction of financial derivative instruments stock index futures to hedge risk and avoid the policy of the city, but there are obvious, systemic risk is too large, accounting for the stock market and the operation of the national economy does not match, the information disclosure mechanism is not perfect, investors’ risk awareness, it is from three aspects, the regulators and investors to listing Corporation to take measures to resolve the system risk of stock market, especially the stock market is to establish a system of risk early warning system, perfect the mechanism of innovation of financial products, and ultimately achieve the purpose of protecting the interests of investors.The purpose of this study is based on the market(the Shanghai Composite Index) describing the history, economics analysis on the system risk of the stock market, by using relevant data of Shanghai Composite Index and the sample stock returns, CAPM model was used to calculate the risk of stock market system in China, analyzes the main risk affect the risk of stock market system in our country, this article from the economic status(GDP), the rate of inflation(CPI), multiple factors of deposit and loan interest rates, the policy events, investor confidence index of systemic risk in the risk of stock market, analysis of the causes of the formation of the system in our country, it is proved that China’s medium and small investors or institutional investors need to control and avoid systemic risks, finally find some suggestions how to control the risk of stock market system in china.