The Research Of The Relationship Between The Stability Of The Stock Market And The Securities Investment Funds

The stability of the stock market and the structure of the market investor are closely linked. The securities investment funds are an important institutional investor and they have direct influence to the stability of stock market. The stability of stock market is a relative concept, which is related to the abnormal wave. There are a lot of factors about stock market stability, to some extent, the securities investment funds are the necessary path where these factors run.At the theories level, there are four features in the securities investment fund. Perhaps it will make investment according to the value of the sheer, and hold them for a long time; but, it also can become the fund to manipulate stock price on the other hand which can be named for" manipulator" behavior. The securities investment fund still has profession division of professional advantage; this advantage may make fund have the arbitrage based on value, which may also make it carry on positive feedback trading strategy. It will produce the foam of stock price. Another characteristic that the securities investment fund has is double entrusted agent in the meantime. In fact, this characteristic of fund is the indetermination which displays in its investment behavior and the disadvantage to the stability of stock market. At last, the basic way of investment of the fund should be a property combination investment and this way is advantageous to the stock market stability, but it needs the special environment. This environment is that the non- system the risk must take some space in the total risk, in the meantime, the stock market still needs to be valid and perfect. Since the theory analysis can't make sure the direction and the strength of the relationship. Therefore, this thesis led to the Empirical Analysis again. We can illustrate the influence it at three points. The impact which fund carry upon the listed company quality;the way of the securities investment fund investment to the stock market and stability as a whole; and the analysis of persistence. The conclusion is that the securities investment fund is not effective about the stability of the stock market .Finally there are some proposals about this issue.