Study On Investment Risks And Yield Of Securities Market In China

The risk and yield of securities investment are one of the matters study mainly. The risk and yield are scaled exactly, which is required for knowing the developing discipline of securities market and protecting the rights and interests of participators. Lasting ten years'development, the Chinese securities market has been growing up. But because of the special characters of development, the market has been fluctuating acutely. A series of studies suggested that, the risk of the securities market didn't match to the yield and many factors pricked up the risk of investment. Since the year of 2001, the problem of shares description has been considered as the primary reason of affecting the healthy development of Chinese securities market. So, the reform on shares description was started up by the direction of related policies constituted by the State Department, meanwhile the securities law and corporate law were edited newly. Although the effect of the series of measures doesn't be emerged in a short time, they arouse the fluctuation of the securities market obviously and influence the characters of the risk and yield.Based on describing the actuality of the Chinese securities market, this paper analyzed qualitatively the mostly factors of affecting the risk and yield of investment. A multi-factor model on risk and yield was used to check up statistically the relationship between the measured risk and yield. The result of empirical research suggested that the risk didn't match to the yield and the measured risk was not the only factor matching to the yield in the Chinese securities market. At the end of this paper, some suggestions were put forward to keep away the risk of security investment in Chinese market, which contained strengthen of the market regulation, heighten of the corporate quality and criterion of investors'behaviors.