The Analysis Of Institutional Factors For Stock Market Manipulation In China

China's stock market was established in late 1990. After more than a decade's development, it gradually becomes a crucial financing channel for China's economic development. However, due to its short history and lack of comprehensive market regulations, stock market manipulation activities are commonly seen in China. In terms of the number of listing companies, individual stock value, the total market value, and the turnover rate which is used to evaluate the severity of market manipulation activities, the A shares market has much grater influence than the B shares market. Therefore, this thesis mainly focuses on the A shares market. Through the study of market manipulation activities and analysis of its characteristics and negative effects in the A shares market, a mathematical model is developed accordingly. A study of anti-manipulation institution was also conducted to explain how it affects the model and the market manipulation activities. In addition to sharing other countries' successful anti-manipulation experiences, this thesis also provides suggestions to help further enhancing China's anti-manipulation institution. The thesis is divided into six chapters.Chapter One: Introduction. An overview of stock market manipulation activities, definitions, categories, technical methods, relevant research notes, market innovations, and structure of this thesis.Chapter Two: Analysis of the current conditions, characteristics, and negative effects of stock market's manipulation activities in China, Using the systematical approach to categorize market manipulation activities and analyze the current situation and all negative effects. The study shows, market manipulation activities are common although peculiar in China. From the aspect of investors, listed companies and social resource, market manipulation is seriously damaging to all.Chapter Three: The internal mechanism of stock market manipulation activities in China. First, based on China market's particularity, I have developed a model of stock market manipulation assuming the market is unregulated. Then, include the regulation factor into the model. Lastly, include the market manipulator factor into the equation, and combine all factors into the model. As the result, we are able to observe the relationship between the market...