China's Stock Market In Particular, The System Role

The stock market is the important part of the capital market, and it is not only the combination of macroeconomic and microeconomic, but also the important medium that converts savings to investments. The rapid development of stock market is conducive to economic growth, property right system reform, industry structure optimization and upgrade, and improving company efficiency.However, because the stock market of our country is still in the early stage, it can't compare with the developed countries in market scale and mature degree. Since the stock market was established, problems such as basis of existence, function, structure have been paid much attention to. Because of the special design of our country's stock market system, among which many unfair things exist, for example, the speculation to bad operated corporations. Such problems seriously injure the efficiency of our stock market, increase the risk of poor-operated corporations, and also injure the benefit of small investors. they also block the healthy development of our country's stock market.In order to repress the speculation to corporations that have problems in operation, Shanghai Stock Exchange and Shenzhen Stock Exchange drew up the special treatment rules respectively, hoping to repress these unfair things. This article tries to study the functions of special treatment rules from two aspects.The first aspect is the function of repressing risk. By comparing the total risk ,system risk ,nonsystematic risk in front and back of special treatment and special treatment canceling, it makes a conclusion that the special treatment rules can repress risk obviously at the short run(time partition for day); In middle range period (time partition for week),the repress function gradually decreases, while in the long-term(time partition for month),it did not repress the function at all.The second part of this article makes use of the event study method, by examining the average excess revenue in front and back, it discovered that the...