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Study Of Contermeasures To Systematic Risk Of China Stock Market

Posted on:2005-01-22Degree:MasterType:Thesis
Country:ChinaCandidate:F HuangFull Text:PDF
GTID:2156360122471748Subject:Technical Economics and Management
Abstract/Summary:PDF Full Text Request
The unique function of China security market gives it an important role in the development of China economy. Meanwhile, it also faces great potential risks, considering the special background of the emerging market and systemic reforms. A detailed analysis on the security market risk, especially systemic risk' s components and their causes of formation, a thoroughly exploring on an effective set of systemic risks countermeasures under the situation of China, these topics are therefore exigent tasks for a professional in this field.The thesis follows a methodology combining both theoretical analysis and authentic proof. It gives a systematical analysis to China security market risks and their countermeasures. Theoretically it begins with the concept of stock market system risks, the thesis checks over its components, and lists the Government Decree Position as the most unique characteristics of the market; follows that, the three causes are discussed - first the unequal value to same share and right, second the halfway reconstruction of companies that came into the market, third the information asymmetry. In the practical testimony part, an indexed model is used on a regression analysis between yield of market index and the 64 companies. that are came into the Shen Zhen market tillyear of 1994. Based on these results, earmarks at different historical stages and their deep-seated causes are investigated. A conclusion is then made: among all the stock invest risks, systemic risk counts for a great scale, and meanwhile pricing of individual stocks are same -direction undulation. Such facts make the multiple investments very much limit in results of reducing risks. Finally, the thesis refers to the western countries' s successful experience in applied stock index futures and option, and focuses on how to introduce this burgeoning financial tool into Chinese national stock market for an effective elusion of systemic risks. This final part gives the consideration not only to the national stock index futures necessity and possibility at a macro point of view, but also discusses at a micro layer on how to design the market and agreement. Besides, focusing on the other problems in the systemic risks that cannot be solved via financial market itself, some policy suggestions are given.
Keywords/Search Tags:Stock market, Systemic risk, Stock index futures, Hedge
PDF Full Text Request
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