China's Stock Market Risk And Its Avoidance Research

Since the stock plays a very important role in the direct financing, and the stock system is so important in the development of modern enterprises and in the reform of nation enterprises, we have gradually recognized the importance of the stock market in the financial market and national economics. To develop the market quickly is an established policy of the development of the national economics. Elusion of financial risk is very important for the healthy development of the stock market. The developing history of the stock market demonstrated that the fluctuation of stock market not only influenced the development of stock market but also resulted in the fluctuation of the national economics. So, to recognize and prevent the stock risk is so important and so urgent. Due to the cognition of stock risk, the author here studies the stock risk situation of Chinese stock market.The first chapter of this paper synthetically stated the development status in quo character and function of Chinese stock market, indicated the meaning of the paper.Chapter two labored the tinctures and sorts of risk of stock market.The third chapter discussed some primary means of prevention of stock market in out country, presented some advices for the elusion of systemic risk, and made a numerical model of portfolio for non-system risk.Chapter four is example study, based on the stock market of Shanghai, selected 34 cross-sectional stocks with preferable performance, and made a demonstration analysis of grouped investment on them.The last chapter provides the conclusions of this study.