The Analysis On The Factors Affecting Share Prices In Post-share Splitted Period

Share splitted is the most harmful institutional defect of China capital market.It distorted the true relationship of supply and demand,destroyed the foundation of common benefits for all the shareholders of listed companies,changed investors'investment behavior and investment properties,lacked institutional basis for financial product innovation and resulted in the loss of internal driving force of sustainable development of China capital market.After the split share structure reform In 2005, China capital market has entered post-share splitted period, changing of structural makes the capital market swing wide.A-share market has been changed significantly in many aspects,including supply and demand, , investor behavior and market system.Further, it will bring far-reaching effects on the market valuation and the prices level, in fact,the both aspects have been adjusting constantly.Stock index shock wide and Stock valuation system confusing,are characteristic of China capital market in post-split share period,undoubtedly, multiple factors induce the phenomenon.Through the comparison of these factors in different periods,we can have a further understanding of the trends of A-share market and a comprehensive understanding the significance of complete Circulation in China capital market.In post-share splitted period,the transformation of market have been washing away the distorted supply and demand,the old institution,the irrational investors'behavior,the old mechanism and old idea. This article will analysis the problem from the four aspects: Foremost, banning non-tradable shares into circulation will make the market sulpply and demand changing uncommonly,specifically, the gap bettween capital demand and supply induce the market volatile. Through analysising the supply and demand for funds from 2007 to 2010, we can have a deep understanding of market changdes that have occurred,and give a reasonable judge on the trend of the capital market. Secondly, the institutions'tranformation of captial market will change the appearance of value subject undoubtedly, Such as goverance of listed companies improve gradually, moderately concentrated ownership structure, developing control market,and compatible incentive and restrictive mechanism will make the governance of listed companies in China enter a higher stage of development, further, the value of listed companies will be enhanced. Thirdly,in the changing of market relations and institutions, investment behavior and investment characteristic of various investors both will get far-reaching changes consequently.In China stock market,the serious"herding behavior", Short-term speculation and rent-seeking for arbitrage will all shift ; the information of market will tend to be complete; the stratege of value investment will come into mainstream; and the securities market will become the"weatherglass of national economy". Finally, the idea of investment will shift,the market will change from Casinos into a place for rational investment.In the end, it will increase the national property income, be helpful for enterprise's competitveness,be in favour of national economy steady and sustainnble development.At the same time, improved institutions will make China capital market become internationaland lay solid foundation for extensive and comprehensive financial product innovation. The shif will attract more overseas institutions participating in China capital market,promote China's capital market developing into a standardization, internationalization and mutiple levels capital market, furthermore,it will exert far-reaching influence on A-share's value and price level.Through analyzing on factors affecting price in transformation market,we can have a comprehensive understanding and judging on these aspects in China capital market,such as supply and demand,corporate goverance,investors'behavior and financial innovation and internalization.It will be benefit for us understanding the past and future of the market correctly.After market institutions'reconstructuring, We believe that our capital market will play a more imprtant role in the development of national economy, and become an Indispensable part of global financial markets.