| It is a more general phenomenon that the informed trading and market manipulation are handled in each country, especially those with very high degree of asymmetrical information. This paper systematically studied the behavior of the informed trading and market manipulation in the security market with asymmetrical information, then analysis the profound reasons that cause these two behavior and their connection., and verifying the existence of these phenomenon by the case of our security market, discussing how to strengthen the supervision measure and how to reduce the degree of the informed trading and market manipulation.Because the informed trader has information of basic value about assets superior than the other participants, so he can utilize this information advantage to do a deal and obtain profits. This kind of trading activity is beneficial to market in a certain extent. But at the same time, the informed trader may adopt the strategic trading in order to maximize his own payoff, thus make himself keep the information advantage for a long time., Then will produce the behavior of market manipulation when meeting certain condition. Namely doing a deal according to the opposite direction of private information that grasp, misleading the market to think it grasps certain private information, making the market move to some favorable direction, obtaining more super profits from it. So, the informed trading may cause certain degree of the market manipulation behavior.The asymmetrical information of the security market is the main reason that causes the market manipulation behavior, and the market manipulation certainly contains the informed trading. The trade based manipulation just go on through buying and selling the securities, not adopting any action that can be observed to change the value of risk assets, also not effusing the false news. It is only because of the great ability that the participant's impact on the market; his trading behavior can influence prices to a certain extent. It depends on his impact on market and control ability through legal means, trading with the opposite direction of his private information, and expecting the market price move towards his favorable direction under the influence of his trade. At the same time it confused other market participants, making them unable to infer the true value from the manipulator's trading activity. Therefore, the market manipulator will obtain more super profits.This paper discovers that pool equilibrium can exist under certain conditions, which explained the existence of this manipulation behavior. But at the same time, it proved the existence of the separate equilibrium under the opposite conditions, which offered abundant theory evidence for the effective supervision of the security market.Among the manipulated stock, various kinds of manipulation types will be reflected in the form of a certain characteristic, for example price trading volume and change of the share holders, or combination of these characteristic. The description statistics analysis illustrates the common characteristics of the manipulated stocks by examining the characteristics of the manipulated stocks prosecuted by the stock supervisory committee. It is found that there are little relations between our market manipulation and the basic value of the stocks. In the last part, the paper gives some suggestion policies and measures to against the market manipulation and the enhancing of the market normalization. |
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