Research On The Illegal Behavior Of Citic Securities In The Stock Market

Institutional investors is a major force in the stock market and play a significant role in promoting the development of China’s stock market.As its financial strength and professional aspects of analysis technology has great advantages, its scale and influence is great.Every movement of the institutional investors has a significant impact on the Chinese stock market.But generally speaking, the development of institutional investors in China is still immature.China’s institutional investors is not playing a role in stabilizing the stock market as positive as the countries whose stock market is mature.Sometimes institutional investors will destroy the original stability of stock market for their own benefit. The broker take a large proportion in the composition of institutional investors.CITIC Securities ranked first in the 2015 ranking of the overall strength of the brokers, so we take CITIC Securities as an example of institutional investors.We want to study the investment behavior of institutional investors through analyze the investment behavior of CITIC Securities in the stock market and to study the investment behavior of institutional investors.At last I will make a suggestion to avoid illegal investment of institutional investors.The article take the event that the CITIC Securities had been checked in 2013 and 2015 as an example, analyzing the irregularities of CITIC Securities, such as market manipulation, insider trading in the stock market and so on.The article also analysis the reasons that why the irregular operations have happened from four aspects, the stock market, regulators, the internal of institutional investors and other investors of market. Then the article propose that there is a need to improve the relevant provisions in the "Securities Act", to strengthen the regulatory functions of the Commission, to encourage institutional investors to invest long-term value and to implement and gradually improve the internal control system of institutional investors., in order to avoid illegal operations of institutional investors.This paper aims to study the existing problems in investment behavior of Chinese institutional investors through a detailed analysis of illegal operations of CITIC Securities in the stock market. The article uses the literature review and case analysis to conclude the final suggestions that can avoid irregular operations. We hope that through this case and its analysis process, we can provide a reference material and analysis of real ideas for those who study Chinese investment behavior of institutional investors, and then arouse the attention of the whole society, make them paying more attention on the institutional investors’ illegal operations in the stock market and at last promote the healthy development of institutional investors.