The Positive Analysis On The Unlock Of Non-tradable Shares After The Reformation And The Movement Of Share Price

There are two different standpoints about how the unlock of the non-tradable shares impact on the movement of share price. On one hand, the unlock of the non-tradable shares was considered as the primary cause to the decline of share price. On the other hand, some people figure that the unlock of the non-tradable shares have very few impact on the market. And there is lack of positive analysis on these two points of view. This essay studied on the monthly unlocked non-tradable shares of whole A Share Market, classified with different standards. According to the real movement before and after the unlock of non-tradable shares, we will analyze the correlation between market size of the unlock of the non-tradable shares and the movement of share price. The results indicate that the unlock of the non-tradable shares is just one reason for the movement of share price, but not the primary cause to the decline of the share price. The unlock of the non-tradable shares depress the market expectation, and it brings negative impact on the investors'mind. Therefore, It's important to find out how to remove the negative effects on the investors'mind from the unlock of non-tradable shares. For this reason, this text summarizes the shortages of the reform policy and the successful experiences on the mature market. We present some suggestions to optimize the unlock the non-tradable shares.