The Study Of The Influence Of Institutional Investors On The Stability Of China's Stock Market

China's stock market started late,although it was established since 1991,but in a few short years,the scale of its development has expanded rapidly.In the process of the development of the stock market in China,there will be a huge oscillation in the market from time to time.So,what is the cause of the big volatility in the market? The lack of institutional investors in the market and the majority of ordinary retail investors are considered to be an important reason for the instability of the market.Therefore,in order to maintain the stability of the stock market,the supervision department promotes the healthy development of the market by vigorously developing institutional investors.At present,in China's stock market,institutional investors have become an important participant,the size and quantity is still in steady growth,diversification of machine to securities investment funds,insurance companies,pension funds,qualified foreign institutional investors,trust companies,brokerage and other institutional investors on behalf of the group has been formed in China's stock market.However,the development and expansion of institutional investors does not seem to reduce the volatility of the stock market in China,and the large oscillation of the market appears.So,what is the role of institutional investors in our stock market? In its diversified development process,whether the stability of the stock market in China can play a positive role,this is a very concern.In this context,it is of profound significance to explore the impact of institutional investors on the stability of the stock market in China.This article is divided into five parts.The first part is the introduction of this article.This paper mainly introduces the background and significance of this topic,combs the research status at home and abroad,clears up the research contents and research methods,and puts forward the innovation that this article tries to achieve.The second part is the definition of the concept and the basis of the related theory.The definition,characteristics and theoretical basis of institutional investors are expounded.The third part is the development process and present situation of the stock market and institutional investors in China.This paper analyzes the problems in the development of China's stock market and institutional investors.The fourth part is an empirical analysis on the impact of institutional investor behavior on the stock market.Through the herd behavior test of China's securities investment funds,it is concluded that there is obvious herding behavior in China's securities investment funds,which exacerbates the volatility of China's stock market.And from the stock market,listed companies,legal supervision,institutional investors themselves,as well as high-quality employees and other aspects of the analysis of the reasons.The fifth part is the conclusion and the countermeasures and suggestions.Put forward countermeasures from five aspects: first,to improve the domestic stock market environment through perfecting the multi-level market system and enhance the continuity of regulatory policy;second,through regulate the behavior of listed companies,improve the exit mechanism of listed companies and the introduction of forced red mechanism to improve the quality of listed companies;third,through the improvement of securities market regulatory system,strengthen the supervision of legal construction and information disclosure to improve the supervision of institutional investors;fourth,the institutional investors to establish a correct concept and improve the investment performance evaluation system to strengthen the self construction of institutional investors;fifth,through the training of high-quality financial professionals in order to promote the healthy and stable development the entire market.