Analyses On Factors Impact On Liquidity Of Shanghai Stock Exchange

The liquidity is a market's common character, which embodies the cashability. One of the important purposes of the stock exchange markets is to raise the liquidity of the stocks that investors have held. Because of the differences between the foreign trading systems and the internal, the foreign measure systems for stock exchange market liquidity are not appropriate for domestic markets. As Chinese security markets developing, liquidity risk management becomes very urgent, so that the research on the market liquidity is much more important.In different security markets or the same security market during different periods, their liquidities differ in thousands of ways, since the factors impacting liquidity are very complicated. The liquidity in stock spot transaction market is the object that this article will concentrate on.This article has reviewed the definitions for liquidity, the indexes measuring liquidity produced by foreign scholars and their primary limitations, and the indexes that produced by domestic scholars, who construct new ones or revise those used abroad.