Theoretical And Empirical Studies Of Stock Market Crisis And The Financial Safety Net

Stock Market Crisis (SMC) refers to either undergoing or already has been collapse. The SMC is also called Stock Disaster, Stock Smash and stock market foam rupture. Once the SMC arises, it will trigger the complete "capital chain shrink effect" and "estimated capital price collapsing effect" that will cause great loss of investors, fund raisers and other market event participants and have strong negative impact on financial system and entity economy. The SMC often occurred in the past and will still take place frequently in the future. Stock market safety net is a series of system, facilities, measures and mechanism arrangement.However, the present stock market safety mechanism is rather weak in elasticity and protection, which can not defend the fierce invasion of SMC. How to avoid, recognize and deal with SMC has become a critical worldwide problem. Nowadays the theoretical understanding of SMC and safety net is superficial and scattered. There are many academic disputes and the theoretical system of SMC is not yet mature. It is of great academic and practical signality to further study SMC.Centering on "crisis recognition, crisis prevention and crisis disposal", this paper analyzes the SMC and safety net to summarize and perfect the theoretical framework based on theoretical analysis and empirical study so that guide and promote the academic research and system perfection. The research purpose, research contents and innovation reflect in three aspects:(1) This paper construct the research framework of SMC which consists of stock market crisis arising, crisis prevention and crisis intervention. The theory of stock market crisis arising mainly discuss the formation cause and mechanism of SMC, onset condition, 1 stage and characteristics, conduction mechanism, result evaluation and onset cycle, etc. The theory of stock market crisis prevention mainly study how to monitor, early warn and prevent the stock market crisis and build the safety net. The theory of stock market crisis intervention mostly study the institution, policy and strategy of crisis disposal. This framework can be considered as a basic one to study SMC.(2) This paper presents a study of a logic analyzer about the mechanism of stock market crisis. Presented a logic analysis framework that is applied to analyze of the mechanism of the stock market crisis based on the interaction of the system and the investor behavior. Use these logical analytical frameworks for an empirical analysis of global stock market crisis in 1929, the Chinese stock market crisis in 2001, the United States sub-prime crisis in 2007, the world's stock market crisis in 2008 and other major stock market crisis in the history, analyzed the mechanism of the stock market crisis, discussed the stock market crisis, the safety net, investor protection and other issues.(3) In this paper, it has a certain degree of originality about the the research of the function and functionality mode of the safety net for the stock market. When we safeguard and deal with the stock market crisis, there are various types of risk need to be Defused. The paper Start from this point of view, stock market Safety net is summed up to Indexes Criteria Mechanism, Compensation Mechanism for Investors, Investors asset security depository mechanism, Mobility aid mechanism, Exit mechanism for securities institutions, Response Mechanism, Supervision Mechanism, Judicial protection mechanism and Crisis warning mechanism. Each functional model is analyzed and discussed the current problems of the safety net in China's stock market, proposed to build the principles of stock market safety net with Administration and market-oriented integration.