A Study On China' Stock Market Crash In June 2015

Since the fourth quarter of 2014,China's A-share market had ushered in a bull market driven by the leverage funds after 7 years of waiting for a long time.Overactive leverage transaction became a new feature of this bull market.In addition to the growing of the margin trading balances,the rapidly rise of over-the-counter financing also as an independent force impact on China's stock market trend.But with the reorganization of over-the-counter leveraged transaction in June 2015,share prices came to fall on A-share market,opened a rapid collapse of the stock market crash.Leverage funds brought about the stock market rising and adjusting and it becomes an issue that we focus on.how to more effectively supervise the leveraged transactions and promote the healthy operation of the stock market is a new problem we are currently facing.This article focused on China's stock market crash in June 2015,its leverage to promote the stock market rising and the stock market crash caused by deleveraging in-depth analysis.The main contents of this paper are mainly in the following four parts:The first part introduces the internal mechanism of the leverage and the stock market crash.The second part introduces the case of China stock market in June 2015,including the review of the stock market crash,the cause of the stock market crash and the types of main leveraged transactions in the market.The third part,the core part of this article,this chapter specifically analyzes the stock market crash in China in 2015 caused by the main leveraged transactions.Which are analyzed and illustrated from three aspects: margin trading,umbrella trust,and Internet funding.This part analyzes the operating mechanism of different means of transactions in the stock market,the High Leverage of the Stock Market Resulting from outside funding which from the branch warehouse system and the series of chain effects of the stock market crash caused by the hard drop of financing and so on.The fourth part is the recommendations about the stock market leverage risk.This part puts concrete measures from two aspects: strengthening the control of the leveraged transactions and promoting the supervision institution to create a good investment environment.The conclusion and enlightenment of this paper are as follows: excessive transaction of the margin trading in the market,the excessively high leverage ratio and the oversight of supervision are the main factors that caused the stock market crash.The proportion of leverage within and outside the market shall be subject to effective restrictions and regulations.The regulatory authority should guide the investment motive of the leveraged participants in the securities market,strengthen the risk supervision and investigation of the highly leveraged transactions,and vigorously develop the mixed supervision with the interrelated financial products across the different market.