Research On The Inhibitory Effect Of Gem Market Rising And Falling Limits On Stock Prices

The price limit system is an important means to maintain the stability of the stock market,and it plays an important role in preventing sharp fluctuations in stock prices and preventing financial risks.On April 27,2020,the 13 th meeting of the Central Comprehensive Deepening Reform Committee reviewed and approved the "General Implementation Plan for the Reform of the Growth Enterprise Market and the Pilot Registration System".In order to implement this plan,on August 24,2020,the Shenzhen Stock Exchange officially announced the relaxation of entrepreneurship The ratio of the rise and fall of the board market was changed from 10% to 20%.Has the change in the price limit system had a dampening effect on stock prices? What impact did the system change have on the volatility and liquidity of the stock market?Does the new price limit system have any inhibitory effect on the discovery of the equilibrium price of individual stocks? By comparing the empirical research results,this paper draws a conclusion,which has important theoretical significance and practical value for maintaining the stability of the Chi Next market.In order to confirm whether the 20% price fluctuation limit system has an inhibitory effect on the price fluctuation,liquidity and equilibrium price of Chi Next stocks,this paper takes Chi Next Index and Chi Next stocks as the research objects,using GARCH family model and event research method,Select the GEM stock data from August 24,2019 to August 24,2020 as the control group,select the GEM stock data from August 25,2020 to August 24,2021 as the experimental group,and compare and analyze 20 The inhibitory effect of the % rise and fall restriction system on my country’s Chi Next market.The study found that after the implementation of the 20% rise and fall limit system,the price fluctuations of Chi Next stocks can be more reflected on the trading day and avoid being reflected on subsequent trading days.It avoids the phenomenon that the price rises by the same magnitude after the price drops sharply.This shows that the implementation of the 20% rise and fall limit system can effectively release the volatility of the stock price on the day and effectively restrain the inertial fluctuation of the stock price on the next day.After the implementation of the 20%price limit,the next-day liquidity of stocks that triggered the price limit increased.After the Chi Next stocks trigger the 20% increase limit,the probability of continuous price on the next day increases,which has an inhibitory effect on the formation of the equilibrium price of the stock price,while the probability of the next day price reversal of the stock price that triggers the 20% decline limit becomes larger,the formation of the equilibrium price of the stock price is weakened,which is also related to the shock absorber effect of the rise and fall limit system.The article finally puts forward policy suggestions,arguing that it is possible to gradually relax the limit on the rise and fall in the main board and small and medium-sized board markets,give full play to the self-discovery and self-adjustment of stock prices,and release the vitality of the stock market;the regulation of GEM stocks;to improve the standardized management of the market,the stock exchange must implement a trading system that matches the 20% limit on the rise and fall,and listed companies must also speed up their own information disclosure;retail investors must also improve their own risk awareness,correctly understand the fluctuation of Chi Next stocks under the20% price limit system,and protect their own rights and interests.