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Shanghai Stock Market Investment Risk Research

Posted on:2006-04-05Degree:MasterType:Thesis
Country:ChinaCandidate:J F ZhangFull Text:PDF
GTID:2206360152988095Subject:Quantitative Economics
Abstract/Summary:PDF Full Text Request
The stock market is a factor market full of uncertainty where the rapid flow of information and capital leads to frequent price changes which in turn results in market fluctuation. Those fluctuation are closely connected with investment risk, a violent and frequent fluctuation in a stock market decides the investment risk of the stock market. Shanghai's stock market is a newly arisen market and ever since the first trade in December, 1990, Shanghai's stock market has grown up rapidly in the last ten years. However, the stock market of Shanghai was established in a period, when there was a change progress from planned economy system to market economy system, so it has also exposed some problems constantly in the course of development. Meanwhile, influenced by the limitation of management system, disordered market competition, the monopoly of information and unregulated operation way, Shanghai's stock market is characterized by high risk and low efficiency of market fluctuation. Since 1997, Shanghai's stock market has been undergoing a rapid progress, regardless of the market scale, the quantity of listed company, the market participates in the composition of each side or the operation rule of the market, there were greater changes, and this kind of change will cause the market investment risk to change. So, it has an important theoretical and realistic meaning in studying the stock market investment risk of Shanghai and dynamic variation tendency for seeking the effective way to stabilize the fluctuation and improve the disposition efficiency of the market. This article is expected to offer decision-making reference and theoretical support for security administration departments for the benefit of their regulation of the stock market and stipulation of stock market efficiency.This article amounts to 4 chapters. Chapter one introduces the fluctuation and risk of the stock market. The risk is from decision of fluctuating, and this chapter has analyzed to the concept of the fluctuation of stock market and formation mechanismat first. Then, based on this theory, it explains the definition of the risk and measuring method. In this paper, the risk is in its normal definition that refers to the deviation of changes in a due period with certain subjections. According to Markowitz's portfolio theory, we use the asset's variance as a measure of the risk, and here in the positive research of this paper, the very "variance" means the variance of the stock's return. It also analyzed the characteristic of the fluctuation in the stock market of Shanghai.Chapter two carries on a theory analysis in investment risk. The risk of the stock market is divided into a systematic risk and non-systematic risk, according to the actual conditions of the evolution of stock market of our country, this chapter carries on the concrete theory to analyse and explain to the risk of the systematic and non- systematic risk, it is a theoretical foundation of the positive research of chapter three.Chapter three makes a positive research to the stock market investment risk of Shanghai. Since 1997, the stock market of Shanghai has had the fast, healthy, normal development, it is very necessary to study how the stock market investment risk of Shanghai is formed and the dynamic variation tendency. The results indicate, the proportion of stock market system risk in Shanghai has already dropped greatly, which quite close to the foreign level, but different to some extent.Chapter four makes a theoretical explain to reduce the risk by making a decentralized investment, and has carried on research to the stock market of Shanghai.
Keywords/Search Tags:Fluctuation, Investment risk, Composition, Decentralized
PDF Full Text Request
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