Research On Reasons Of Stock Price Fluctuating And Stability Countermeasure In China

It is inevitable that the price of stock fluctuates in stock market. But the frequent and violent fluctuation will make investors difficultly to make correct investment and decision. At the same time, it will influence the development of one country' s economy, even bring out the economic crisis. Since the stock markets of our country were established, the stock price has been in unusually fluctuating all the time. Compared with the foreign stock market, the stock price is intervened by police in Chip China stock markets are entitled police market. Meanwhile, institution investors manipulate stock price and private investors blindly gamble in China stock market. So, the canonical development of the stock market of China urgently requires us to carry on further research on fluctuation of stock price in China.This paper introduces the latest research results both domestic and foreign, and puts forward four mechanisms of the stock price fluctuating in China. It analyses the characteristics of stock price, and points the policy and investors behavior particularly influence the fluctuation of stock price. It deeply analyzes policy impact on stock price, dividing policy into continuity policy and stock policy incidents to study respectively, and structures models to carry on the real example analysis separately. It draws a conclusion that policy incidents are the primary factor of policy that cause the stock price fluctuating . It points that the recessiveness guarantee ofgovernment offering to stock market is the origin of police influencing stock price. It carries on theory analysis to investor' s behavior and points that the condition of information dissymmetry between investors and less than perfectly rational lead to stockjobbing that institution investors manipulate stock price and private investors blindly gamble. It points that institution investors manipulating stock price causes the unusual fluctuation of the stock price and herd behavior of the private investors aggravates fluctuation of the market. The paper separately structures the game models to Drove above-mentioned conclusions further, and points out that if the institution investors manipulating stock price cannot be castigated, it will induce more manipulation and cause the more unusual fluctuation of stock price. On the basis of above analysis, the paper puts forward some suggestions to steady stock market.