| In recent years,as China's economy having entered the new normality,the corporate finance becomes increasingly dependent on bank loans,so that the too high asset-liability ratio has been a common and serious problem as to most companies.As a result,deleveraging and increasing the proportion of direct financing will become the direction of corporate financing in the coming period.That means equity financing will be increasingly valued by companies.But since mid-2015,large fluctuations of Chinese stock market once interrupted the financing function of the stock market,which makes an adversely affect on the upgrading of China's economic restructuring.The substantial decline of the stock prices also give investors a huge loss of wealth,therefore ascertaining the reasons of the sharp fluctuations in stock market and preventing the concomitant systemic financial risk have to be a very pressing issue.There are large amount of scholars doing research on stock price fluctuations,but generally speaking,their various viewpoints are relatively isolated and fragmented.Among the factors affecting stock prices,almost all of them play a role in the stock prices ultimately with the help of the carrier "capital".So this paper tries to unify all levels of funds based on the perspective of funding information.The article elaborate the effect of flow of funds on the stock prices,specific from three levels,the macro level,market level,and transaction level.Firstly,the paper collates and reviews research results about the impacts of the funds information on the stock prices.Secondly,it then elaborates the mechanism on how the capital flow impacts on the stock prices on the macro level,market level and transaction level,respectively.And then the article starts empirical research through constructing models based on the funds information at all levels.At last,it draws final conclusion and gives the relevant recommendations based on the empirical results.According to the theoretical analysis and the results of empirical research,this article draws the following conclusions:(1)at the macro level,the narrow money supply has a medium and long term impact on stock prices,and a long-term positive effect on stock prices.Also,the year on year growth rate of money supply substantially has the same fluctuation cycle with the stock market.(2)At the market level,the incremental funding of investors have a medium-term impact on the stock prices in the capital market.In the medium term,the incremental funding have a positive influence on stock price in the same direction.Among which institutional investors' incremental funding bring an impact on stock prices more ahead than individual investors'.(3)At the transaction level,the main capital(mainly from the institutional investors)has a dominantrole on stock prices in short term.While non-anchor funds(mainly from the individual investors)often trade bucking the trend.What's more,transaction amount also has a positive impact on stock prices.(4)On the whole,China A-share market is very typical capital-driven "funds market".The great amount of inflow and outflow funds leads to stock market a huge volatility,at the same time,the short period of funds involved in stock market causes short cycle of fluctuation of stock market.All in all,too fast capital flows in China A-share market causes the stock market lack of stable long-term funding,which is the direct reason for the instability of China A-share market.As a result,in order to create a favorable environment for enterprises equity financing and proving long-term healthy development of the stock market,we should actively introduce long-term investment funds,also guide investors especially institutional investors to do long-term invest,as well as regulate their behavior.So that we can realize comprehensive development of the stock market. |
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