An Analysis On The Influence Of The Reform Of Splitting Share Structure On Chinese Stork Market

The reform of splitting share structure is the most important and profound institutional adjustment and reform. It eliminates the interest gaming between large shareholders and small shareholders, which is in favor of changing the situation of the dominance of one shareholder, recovers and completes the pricing and financing function of the stock market. However, after the reform of splitting share structure, the highly scattered shareholding may induce the problem of 'internal control'. Also, the behavior pattern of large shareholder will change and M & A activities will lead to the market fluctuation and so on. All of these problems will bring the negative influence to Chinese stock risk. Hence it has practical significance for steadying the achievements of the reform of splitting share structure, helping Chinese stock market transform into Full Circulation times smoothly and developing Chinese socialism economy to research the influence of the reform of splitting share structure, discuss the controlling measures for new risks after the reform of splitting share structure.On the basis of utilizing others' work in and abroad, the thesis chooses the data of Shanghai Stock Index and SSE Component Index from June fist 2001 to twenty-eighth March 2008 as research sample and use GARCH-M model to do empirical analysis. And it is concluded that after the reform of splitting share structure, the risk of Chinese stock market has increased. Therefore, the author analyses and explains them from the aspects of the changing of large shareholder's behavior pattern, non-tradable share allowing to be traded, policy factors and so on. Finally by considering the practical situation, the author summarizes the new risk characters in Chinese stock market after the reform of splitting share structure and give the suggestions on the controlling risk measures which include accelerating the finance innovation and the reform of security trading system, constantly perfecting the related law system, reinforcing the supervision of large shareholders and M&A activities, implementing independent financial system, strengthening information disclosure of listed companies.