Empirical Analysis Of Margin Trading's Volatility Influence On China's A-share Market

When there is no margin trading in our country,the problem of mono market structure,derivatives scarcity and unilateral transaction are obvious.Since 2011,margin trading almost became each broker's regular business and investors finally have tools to hedge market risks.While the worst bout of volatility that our country's stock market gyrated between 2014 to 2016 has brought a brand new test to the development and exploration of margin trading.Though China is at present in a period of great development of economy and gradually edged itself into a capital giant,it still has many deficiencies in implementing margin trading.Therefore,this essay will delve margin trading into the volatility effect of Chinese a-shares,moreover,further analyze deep reasons and problems behind this phenomenon in order to find out the corresponding solution,which has great practical significance on promoting the healthy development of the A share market in China.With a view of combining practice and theory,this paper selects China's A shares csi 300 index from 2014 to 2016 as the research object.Through the observation of band index,the index is divided into stationary,rise and fall phase,aiming at exploring the volatility effect of stock market during the rising,falling and smooth time.In the aspect of empirical analysis,this dissertation selects financing purchases,selling securities and volatility as the research target.Through stationary test,cointegration test,VAR model and impulse response to the data,it analyzes margin trading's influence on China's a-share market volatility.Finally it analyzes the results and offers suggestions on margin trading to China's a-share market volatility with some references and theoretical basis.