The Empirical Study On The Relationship Between China Fund Shareholding Behavior And The Stock Price Fluctuation

In the Chinese securities market, market investors are initially retail investors, speculative atmosphere are heavier, caused a sharp fluctuations in the market. In order to reduce market fluctuations, regulators consider introducing the development of securities investment funds in as a representative of the institutional investors, hoping securities investment fund to introduce the concept of value investing and rational investment into market by virtue of their professional, financial and information, reducing the volatility of the stock market. With the large-scale securities investment funds into the market, Is the degree of market volatility more lower? In this paper, an empirical study from the relationship between the positions of the securities investment fund behavior and stock price volatility, and the conclusions in this article provide some references to the recommendations of sustainable development for the health of China’s securities market, with very practical guidance significance.This paper firstly summarized about the issue of domestic and foreign relevant research,respectively from the theoretical and empirical angle. A majority of scholars does not draw the same conclusion about this problem.The paper discusses a series of theory in the process of securities investment fund,belonging to the behavior of short-sighted, herding effect, positive feedback trading strategy and manipulate behavior,the article points out the securities investment fund holding behavior do not play a role of stabilizing the market.According to the actual conditions of our country securities market, considering the characteristics of grail blue chip and small market value stocks, and investors’ appetite for risk, acarefully analysizing the role of securities investment funds in China’s stock market, respectively, and puting forward for the overall assumptions: the behavior of the fund’s holdings in China did not play a role of stabilizing the market and individual on two assumptions: The fund holding a blue chip plays the role of stabilizing stock prices, but holders of small and medium capitalization stocks have exacerbated the stock price volatility.Aiming at the whole of the hypothesis advanced, this article use the time series data to test. For the assumptions made on the individual, respectively, the empirical test is for the grail blue chip and small and medium-sized market value stocks. So the empirical results support the hypothesis based on theoretical analysis.Based on the analysis and test results, combined with the actual situation of the securities market, this paper puts forward to need to further perfect the system of the stock market conditions and ecological environment, to change the securities investment fund current evaluation methods and the,evaluation index,,strengthening trade supervision, improving information disclosure system, raising the quality of listed companies and management performance and so on a series of policies and proposal, the paper hopes to provide some references and guidances.