The Chinese Stock Market Manipulation And Regulatory Study

Since its ubiquity and great harm, stock price manipulation and its regulation and its regulation has been the focus of world wide academic and practical attention, China's stock market also suffers severe price manipulation and insufficient regulation, yet it still does not draw enough attention.The paper combines prescriptive and practical, qualitative and quantitative, case study and statistical methods, in order to find out the characteristics of stock price manipulation in China's stock market, and also hopes to find means to strengthen our regulation and anti-manipulation system according to the current situation of the development of our stock market.The paper consists of five parts. Firstly I carry on a review to the domestic and foreign scholars' research on the stock price manipulation, in the second part, the paper takes an objective analysis of the way in which china's stock market is manipulated and the cause of the manipulation. In the third chapter, firstly I find that auto-correlation of time series of stock return and persistency of the GARCH model could be an index for speculative price by comparing the characters between the speculative price and non-speculative price presented by GARCH modeling, and then stick out that low β coefficient is an important symbol of stock price manipulation through empirical study. In the fourth chapter, the paper analyzes the current situation of china's stock market manipulation and also has a deep analysis of the cause of it. Finally some suggestions are put forward to perfect the market regulation and anti-manipulation system.The main contribution of the paper is that it combines prescriptive and practical methods and firstly constructs GARCH model and calculates β coefficient to indicate the characteristics of china's stock price when it is being manipulated at first stages.