The Empirical Analyses On Stock Market In China

Risk is an important factor in the stock markets all over the world. Many theoreticians and practitioners have studied the risks and system-risks in stock market. And a lot of fruits have been gained. In this paper, the author try to analyze the tendency and the causes of systematic risk in China stock market based on the predecessors' research findings. The contents in this paper can be included into 4 parts: a) the classification of risk, the stock market risk theory and the choice of the analyses model are discussed. b) The stock market risks in China are demonstrated practically. c) The characteristic and the original cause of the systematic-risks of stock market in China are analyzed. d) Some practical advices are put forward to control the risk on stock market in China. In the first part, the conceptions about the stock market risk (systematic risk and non-systematic risk) are mainly explained. And then the analyses model, the sample index (the earning ratio) is chosen. In the second part, the stock market risks in China are demonstrated practically. A-share of Shanghai and Shenzhen stock exchange have been chosen for the sample, and the capacity of the sample is adjust with the increase of the number of listed company; the percentage of systematic-risk is calculated and the whole fluctuate tendency of the systematic-risk is showed. The conclusions are that the stock market risk in China is high and the high percentage of systematic-risk is existed in the security market in china. In the third part, the characteristics and the original cause of the systematic -risk of stock market in China are analyzed by comparing it with the developed security markets in foreign countries. In the fourth part, the suggestions to control the risk (especially the systematic-risk) of the security market in China in the future are put forward, in order to take precautions in advance and to make security market developed better. Such as improving the market system structure, reforming the issue and withdraw mechanism, perfecting the listed company's structure and administrations, improving the listed company's quality and the supervision of the security market in China, etc.