Research On Risk Warning Of Shanghai Stock Index Based On Artificial Neural Network

Since the birth of the stock market,it brings us both returns and risks.The stock market crisis has occurred from time to time.With the acceleration of economic globalization,the stock market crisis will not only affect the domestic economy,but also have a great impact on the economic growth around the whole world.If the stock market risks accumulates unceasingly,to a certain extent,it might cause a stock market crisis.Therefore,risk early warning is extremely important.Governments and economic organizations around the world attach great importance to stock markets risks.More and more individual investors pour into stock markets and start to pay attention to risk early warning.For this reason,risk early warning is also of great significance to maintaining the stability of national economic order and general public.In this paper,the Shanghai stock composite index is selected as the representative of China’s stock market.To build a risk early warning system which suit to China,I have read a large number of literature,monographs,papers and other research results on risk early warning,stock market analysis and stock market cycle theories.Base on the research in these fields and actual situation of China,several extreme points was defined as learning points.The RBF neural network has significant advantages on data analyzing and curve fitting.Stock markets always fluctuate as a complicate curve.Using the RBF neural network,it is possible to understand the situation of stock markets,and to predict the extreme points even the crisis.