Study Of China's Stock Market Speculation

Speculation that is close relative to the speciality of security is a natural situation in the stock market. Though speculation could make the stock market run well, it is a damage to stock market and even the whole economic system when speculation is exceeded.the degree of the speculation could be weighed by using three indexes which are portfolio turnover rate, variance of share price index and price-earning ratio, we found out that the speculation is exceeded in the stock marker of our country, but it hasn' t accumulate too much risk due to the direct control of government.The fundamental cause of exceeded speculation consists in three aspects. Firstly, the especial configuration of share rights in our stock market cause that the embodiment of the control character of security is incomplete, which make the benefit disjunctive between the stockholder who hold the shares that can trade-off open in the stock market and those who hold the shares that cannot trade-off open.Secondly,the unsuitability role of government cause that the stock market become the policy market, and result in the hidden hypothecation of government to corporation. In addition, it exits some others fators, for example the much less investment channel, the much less return from company and the inexistence of short sale system.The participator should make great efforts to promote the stock market would run better.The government should focus its attention on constructing the system and cut down the direct control. The company should improve its ability of acquiring profit and return to the stockholders. The securities association of china should strengthen the industry self-discipline to advance the development of the stock market. It is also better way to make for the market that develop the group investor to change the configuration of investor.