The Impact Of Restricted Shares Reduction Sale To China's Stock Market

The split share structure reform of China began in April 2005 has been successfullycompleted, after that the split share structure reform generated a large number of outstandingshares of restricted sale. These restricted shares sold after the lift, which has a significantimpact on the stock market. while the stability of the market has great significance , so theresearch about the restricted shares reduction sale has an important and practical impact onstock market prices in particular.In this article, firstly summarize the relevant theories about the split share structurereform and capital markets; Then select the appropriate data, set the main target to establishsuiting our country's empirical research model. First according to a linear regression model towhat impact of the sale of stock holdings on the stock price index changes, further establish amodel about a sample of stock market shares for the two securities market with the eventstudy, and put forward the hypothesis. Second based on the digital data to analyze the changebetween the restrict share reduction sale and the stock price by the descriptive statisticsanalysis, significance analysis and linear regression analysis, and further to compare thechange about the tow markets in long-term and short-term. According to the results ofempirical studies, restricted share reduction sale of two samples of the stock market has acorrelated but not significant relations to the change of stock index, that is the reduction andthe price rise is synchronized, The market has declined over the rising power of power. At lastto analyze the reason of high price of stock with the conclusions and propose advices to easethe market pressure in accordance with the reduction of future market expectations, so thatChina's securities market can develop healthily and steadily.