Study On Mechanism Of Endogenous Stability In China's Stock Market

In recent years, China's reform in realms of the commercial bank system, exchange rate forming mechanism and stock market regime construction got positive progress and the risk level of the whole financial system lowered. In the stock market, reform of split share structure makes the stock market system more mature, and the security investment funds' influence grows along with their growth. Yet the market volatility keeps at high level, becoming a great potential risk of the financial industry. In future, the stable development of China's stock market needs not only the exogenous rule and law perfection, but also the Endogenous self-equilibrium system relied on the market entities' self-constraint. With the background that security investment funds have become the most important institute investors, to study how to stabilize the stock market development by security investment funds function has theoretical and practical meaning for policy-making.The key contributions of this paper are as follows. First, it clearly defines the conception of stock market Endogenous stability mechanism and analyses the framework of the mechanism; second, it analyses the shortcomings of the exogenous stability regime and the constraint factors of the Endogenous stability mechanism; third, it investigates the features of security investment funds on aspects of stock concentration, heavily-positioned stock turnover rate and stock choice propensity; fourth, studies the constraint problems of the China's institute investors' market stability function; and finally, forwards the study to how to construct the Endogenous stability mechanism, including the questions of effective scale boundary, regime boundary, perfecting the structure of institute investors and how to make the Endogenous and exogenous stability mechanism develop in accordance.