Study On The Risk And Control Of Securities Market Opening In China

The internationalization,regionalization,integration of securities market were important features of the developing global stock market Since the 1970s,and the securities market opening has entered a rapid development and irreversible stage. Many newly industrialized countries opened securities market in the late 1980s, early 1990s driven by financial liberalization, However, after the Mexican financial crisis in 1994 and the financial crisis in Southeast Asia in 1997, economists doubt the positive effect of the securities market opening. They think that the occurrence of these crises related to over speculative capital. In this context, the risks of securities market opening were more and more regarded. China opened the market gradually in the early 1990s at the beginning of establishing A-share markets. How to open the securities market and control their risks were currently faced up while capital project has not yet been liberalized, and the domestic securities market was still imperfect.The first chapter in this article summarizes the concept of different definition of the securities market opening, and thinks that the securities market opening covers three areas including the investment opening, the financing opening and the securities services opening, of which the investment and financing opening belong to capital flows contents. By collating domestic and overseas literature, the following points were summarized: (1)The securities market opening has a significant positive impact, and promotes the securities market development. (2)Foreign scholars have differences on the issue whether the market opening promotes economic growth, but they all think that the domestic financial system reform and good economic base are important prerequisite. (3)Securities market opening enhances the relevance between the open country and developed countries, and the open countries were vulnerable to volatility spillover from the United States, the United Kingdom and other developed countries.The second chapter analyzes the status quo of investment, financing and services in the process of securities market opening, compares the background, strategies and risks of the developed and emerging securities markets, summarizes experiences and lessons of the emerging securities markets opening, analyzes market-related regulatory, legal, interest rates, the exchange rate and other aspects reform, and brings forward the path and strategy.Chapter III analyzes the mechanisms of the risks of securities market opening, relation between the financial crisis and market opening, and the opening risks from four areas, and methods of risk measurement were concerned.Chapter IV analyzes stock market fluctuations since the implementation of QFII system by GARCH model. The herd behavior is studied by CSAD model. It is proved that only Shanghai stock market shows a slight Herding Behavior in ascent stage. An Empirical Study was made to analyze the volatility relation between Chinese securities market and the international stock market in the fifth chapter. The studies showed that the Chinese stock markets were less vulnerable to fluctuations from the international spillovers and showed a high independence. This manifests that Chinese security markets risks is in a controlled ranger. The Chapter VI studied the risks of listed companies, financial institutions, regulatory of the securities market opening.Finally, facing the risks of the securities market opening, this paper puts forward the corresponding control measures concerned the market, securities companies, listed companies, and securities regulation.