The Impact Of Shanghai 50ETF Options On The Stock Market

China pushed out his first option at Shanghai Stock Exchange on February 9,2015.In these four years after launching,the trading volume and positions of the SSE 50ETF options increased year by year.Especially in the stock market crash in 2015 and 2018,the superior risk management function and high leverage of the SSE 50ETF options also attracted the attention of investors.Nowadays,in addition to the SSE 50ETF options,Shenzhen Stock Exchange and China Financial Futures Exchange are actively preparing options.Under this background,this paper hopes to analyze the impact of the SSE 50ETF options on the stock market by comparing the changes in the stock market data before and after the launch of SSE 50 ETF options,and provides theoretical and empirical support for the development of the financial market in China.This paper will study the influence of SSE 50ETF options on the stock market from two perspectives.Firstly,this paper establishes the GARCH family model in order to analyze the long-term and short-term impact of SSE 50ETF options on the volatility of the stock market.Secondly,this paper uses the Shanghai and Shenzhen 300 Index and SZSE SME 300 price Index constituent stocks to establish the CSAD model.By establishing the CSAD model,the influence of the SSE 50ETF options on herding behavior in stock market is analyzed.The research indicates:In the medium and long term,the SSE 50ETF stock options takes no significant effect on reducing the volatility of the stock market.However,the SSE 50ETF options significantly improves the quality and speed of information dissemination in the stock market,and also improves the information efficiency of the stock market.Before the launch of the SSE 50ETF options,there was an asymmetric effect in China's stock market,and the impact of good news was greater than the impact of bad news.The SSE 50ETF options effectively reduced this asymmetric effect.The launch of the SSE 50ETF options exacerbated the herd behavior of the stock market.Moreover,after the launch of stock options,regardless of the large-cap stock market or the small-cap stock market,the herd behavior in the bear market stage is more intense than the herd behavior in the bull market stage.Based on theoretical and empirical research,this paper believes that the SSE 50ETF options play it's economic function in the stock market after launching,but it aggravated the herd behavior of the stock market.Therefore,while strengthening the stock market supervision and enriching the types of stock options,the market cannot ignore the importance of investor education.By improving the professionalism of investors and optimizing the structure of investors,we can finally promote the prosperity of the financial market.