The Effects Of Securities Margin Trading On The Quality Of Chinese A Share Market

Since pilot-sectors margin trading in March 31,2010,the balabce of margin trading in China is more than 100 times than that on initial stage.The margin trading has played an increasingly important role in Stabilizing A share market in China.In principle,the implementation of margin trading can improve the operation quality.reduce the volatility and enhance the liquidity of China's stock market,but it also amplify market risk.selecting two indicators and turning to the analysis of VAR model、Granger causality test、impulse response analysis、variance decomposition analysis、panel data regression analysis、other research methods and the stock market,The paper study the effect of transactions on the quality of the stock market from the two aspects of markte and stock based on the relevant transaction data from March 31,2010 to March 31,2017 China's A stock market liquidity and volatility.In this paper,some conclusions can be drawed as follows:The empirical result based on some stock market datas indicates that margin trading is the Granger reason of the stock market volatility and the market volatility of financing transactions and margin trading has a negative impact on the impulse response,the margin trading can reduce market volatility,the margin trading Granger is the reason of the stock market turnover,the market turnover rate of financing transactions and margin trading has a positive impact on impulse response,margin trading can increase market liquidity.The empirical result based on stock data indicate there is a significantly negative correlation between the margin trading and stock volatility,further study on how financing transaction and margin trading affect stock volatility shows that margin purchase transactions are able to reduce the stock volatility;margin trading with the stock exchange rate between the significant positive correlation,margin purchase transactions are able to increase the liquidity of the stock.Based on the above empirical conclusions,we believe that the margin trading system improves the operation quality of China's A share market during the sample period,but we still need to further improve the margin trading system and promote the balanced development of financing transactions and margin trading.