Research On The Influence Of Investor Sentiment On The Liquidity Of China’s Growth Enterprise Market

In order to meet the financing needs of my country’s small and medium-sized enterprises and promote their continuous renewal and transformation,the GEM came into being.The Growth Enterprise Market occupies an important position in my country’s financial market,and its own liquidity status determines whether it can perform its functions normally.However,stock liquidity is susceptible to investor sentiment.Therefore,on the basis of scientifically measuring investor sentiment and individual stock liquidity in my country’s Growth Enterprise Market,we will comprehensively consider various factors and conduct in-depth research on the relationship between individual stock liquidity and investor sentiment.,Has important meaning.First of all,this article summarizes the existing literature from the current research status of investor sentiment,current research status of liquidity,and the relationship between the two,and finds that the impact of investor sentiment on the liquidity level from the individual stock level is less,and Some indicators that measure investor sentiment do not represent investor sentiment well and need to be improved.Then,according to the corresponding theoretical basis,it is analyzed that investor sentiment can affect the liquidity of individual stocks through two channels,direct and indirect,and this effect is asymmetric under different market conditions.Secondly,the main research question of this article is the impact of investor sentiment on the liquidity of individual stocks.Therefore,the measurement indicators for measuring investor sentiment in my country are selected from three levels of retail investor sentiment,institutional investor sentiment and market investor sentiment.The above puts forward the buying and selling herd effect ratio is used to measure the degree of chasing ups and downs in investor sentiment,and the ratio of high and low risk stock trading volume is used to measure the risk appetite in investor sentiment,so that the entire indicator system can be better.To measure investor sentiment.At the same time,other factors that affect the liquidity of individual stocks are comprehensively considered from the macro and micro levels,and controlled.Based on the monthly transaction data of my country’s Growth Enterprise Market,the relationship between the two is studied using structural equation models and distinguishing different market situations.The research found that:(1)The selected investor sentiment measurement indicators can better measure investor sentiment,and the indicators representing retail investor sentiment play a leading role in overall investor sentiment;(2)The selected liquidity measurement indicators can be more effective A good measure of the liquidity of individual stocks.The combination of volume and price indicators can better measure the liquidity of individual stocks;(3)The rise of investor sentiment in the market will significantly increase the liquidity of individual stocks in the GEM;(4)The liquidity of individual stocks responds to investor sentiment in a bear market It is more sensitive and asymmetric;(5)Among the effects of other factors on the liquidity of individual stocks on the GEM,the two levels of macroeconomic and market transaction characteristics have no significant impact on the liquidity of individual stocks.Good company fundamentals,loose monetary policy,good trading characteristics of individual stocks,and good information transparency have a significant positive impact on the flow of individual stocks.Finally,based on the empirical results,combined with the actual operation of my country’s stock market,some policy recommendations are put forward from the perspective of investors and GEM market regulators,in order to contribute to the healthy and stable development of my country’s GEM stock market.