Research On The Fluctuation And Control Of China's Stock Markets

With the rapid economic development of China, the stock market plays an increasingly important role in financing and resource allocating. However, the Chinese Stock Market is one of the emerging equity markets, the stock price fluctuates violently and frequently. This phenomenon not only makes it difficult to play for financing and resource allocating, but also makes it difficult to become a barometer of the economy.On the basis of studying the stock market volatility theory, firstly, paper studies the descriptive statistical characteristics of the Chinese Stock Market. And then, by using the ARCH models, we did the empirical analysis about the volatility of the China Stock Market. Lastly, we studied the relationship between the stock market and macro-economic performance. The results show that there are autoregressive conditional heteroskedasticity characteristics and peak fat-tail characteristics of the stock market returns.Paper believe that the poor quality of listed companies, lacking of the price-discovering mechanism and macro-control means, irrational behaviors of the investors lead to the excessive volatility of the Chinese Stock Market. Therefore, by taking some measures, for instance, enhancing the quality of listed companies to lay micro-foundation for market development, perfecting the stock market's pricing function, regulating investor's behaviors and enriching the regulation and control mechanism to strengthen the institutional basis for market development, we can promote the stable development of China stock market.