Study On Behavior Of Stock Price Manipulation Based On Neural Network

The Chinese stock market has been expanding enormously since Shanghai and Shenzhen stock exchange markets are established. But there are a series of illegal incidents, among which the stock price manipulation is one of the important parts. Therefore, enhancing regulation of the stock price manipulation is an important issue in the stock market. As the stock price formation is affected by multiple factors, this has brought some difficulties in the stock market research, and the characteristics of neural networks have facilitated modeling.Firstly, price manipulation cases are collected and analyzed, and the features of manipulation subjects, industries, stock sizes, financial characteristics and market trading are summarized. With these indexes, this paper establishes the stock price manipulation model based on BP neural network, and provides decision-making basis to investors and regulators.Based on the related researches, the conclusions are as following: The reasons of China's stock market price manipulation are complicated. Chaotic governance structure of listed companies, unreasonable non-tradable shares, investors'structure defects, not timely case investigation, and inadequate legal system have facilitated the manipulation behaviors.Most manipulators are institutional investors, of which the brokerages and fund companies form the main part; manipulated stocks come from various fields including finance, utilities, real estate, integrated trade, industry and commerce, and mainly from the industry; small stock capitals and asset sizes of the companies are easy to be manipulated; the companies'financial are weak; during the stock price manipulation process, market trading conditions change significantly.The establishment of stock price manipulation supervision model based on BP neural network with financial indicators and market transactions is able to foresee the stock price manipulation behavior with a high rate of success.Finally, through building stock price manipulation and prevention model, the analysis shows that by reducing the monitoring costs, increasing penalties for manipulation, and strengthening investors'education, improving the governance structure of listed companies as well as developing institutional investors, the behaviors of stock price manipulation are able to be effectively reduce.