The Impact Of China' S Stock Market Volatility On The Investment Behavior Of Insurance Institutions

With the rapid development of financial liberalization and financial innovation,insurance companies have become the most important institutional investors in the capital market.Although in recent years,the A stock market downturn,but frequent insurance funds into the stock market,stocks,securities investment funds and other equity investment scale are rising.The diversification of insurance institutions to increase the investment,investment channels have a certain influence on the stock market.At the same time,changes in the stock market volatility also affects the investment direction and investment amount of insurance institutions:the investment behavior.As one of the main members of the social and economic compensation system,the insurance industry requires that the fund should be steady when it gets the income.On the one hand,in order to promote the development and maturity of the stock market,it is necessary to establish a scientific and perfect market mechanism,expand the investment channels of insurance companies,optimize the investment structure.On the other hand,the insurance sector investment capital,capital market can not only solve the problem of interest loss,but also a long drought in listed company,through an increase in capital,to adjust the internal structure and improve the management.At present Chinese insurance agency is in the growth stage,coping mechanism and investment strategies are not mature,so should not be overlooked stock market fluctuations of insurance institutions.Firstly,analysis of stock market fluctuations influence of insurance investment mechanism.Secondly,operating mechanism of China's stock market also is not yet mature.By profiting from the advanced scholar's theories of knowledge and scientific research results,we can use econometric models to analysis of insurance company investment in China.Selected variables then the ADF unit root tests,Cointegration JJ,testing whether the volatility of stock market investment behaviors of the insurance industry has a long-term equilibrium effects the operational mechanism of China's stock.Through the comprehensive Granger causality test,we can draw the following conclusions:In the short and long term,the stock market volatility will affect the behavior of investment of insurance funds,and reciprocal influence.In particular,in the short term,the stock market volatility,the greater the insurance institutions invest in the stock market scale,the greater the investment bank savings ratio is lower.But long-term than short-term effects is remarkable.Finally,based on the present insurance agencies in the face of difficulties and risks,from two angles of self-discipline and bound,put forward to improve its managerial Suggestions on the development of risk investment and improve institutions.