Research On The Impact Of Margin Trading On China's Stock Market

Beginning in June 2015,China's stock market took place a rare turmoil from the the last century in 90 s.The stock market turmoil in China's rapid economic growth,the transformation rate declining,the financial structure to the critical moment a major adjustment,greatly shows the complex characteristics of the stock market crisis has significant risk and capital market with the market is also a part of the blame on the collapse caused by short system currently on the market,the common way is short of financing business.An important change in margin trading system which belongs to the China stock market,not only to promote the domestic stock market with international standards,the domestic stock market has entered a new stage of development,but the development is accompanied by a new problem,it will lead to large fluctuations in the stock market? Or the weakening of the stock market? These are the financing mechanisms must be considered after the formation of margin trading.However,for these problems,simply rely on the theory and the lack of practice cannot handle,so as to improve domestic margin trading mechanism,also triggered a discussion on these issues and research workers in many industries.Therefore,the establishment of correlation analysis in previous scholars on this mechanism as the main body of this paper,on the basis of the domestic A market trading data of margin financing plays an important role in Chinese stock market with the perspective of stock market volatility,the purpose is to let the domestic margin trading mechanism is more perfect,to promote the continuous progress of the domestic stock market.Analyze not only has great academic significance of this,more of the implementation of the margin trading mechanism how to improve supervision and management mechanism of domestic securities market,promote the stability and development of the market has great practical value.This paper is divided into five parts: the first part is the preface,the article simply introduced the background of the research,the value.the second part is literature review,respectively expounds the domestic and foreign scholars on the margin to affect the volatility of the stock market this problem is not the same research results.The third part is the related concept introduction,briefly introduces the basic definition of the margin,the foreign market financing mode and such services in the course of development and current situation of China's domestic stock market volatility and otherrelated concepts.The fourth part is the empirical study,the first is to explore such business has influence on the volatility of the stock market theory,financing mechanism to fully explain the long and short trading on the stock market volatility has effect.At the same time by selecting the Shanghai and Shenzhen two city of margin purchase and short sale quantity number as explanatory variable,select the Shanghai and Shenzhen300 index data using the GARCH model in order to carry out an empirical study on the impact of China's stock market volatility and liquidity,according to empirical conclusions obtained by a detailed interpretation and discussion.The fifth part puts forward the corresponding countermeasures to the problems of stock exchange,which is related to the domestic reality.Through the use of qualitative and quantitative analysis of the combination of methods to carry out research.First on the margin of the concept and the development of such a business in the country to depict the reality of the situation.After the use of the domestic and foreign existing sound theory to explore the mechanism of this kind of system for the domestic stock market volatility.Finally,the Shanghai and Shenzhen 300 index with the actual data of the margin trading as a sample,using GARCH model to quantitatively study the impact of margin trading on the volatility of the domestic stock market.