Stock Price Index "distortion" Of The Empirical Analysis

Be compared with the stock market of other contry, the stock market of Chinahave unique features on the Equity structure, that is:The national share and thecorporation share can't be traded ,and tradeable public share accounts for very littleproportion. this arrange of Equity structure has the rationality in that day, and is alsothe indispensable choice in the backdrop of the planned economy system andstateowned economic.With the development of the Chinese economy, this Equity structure has alreadyshowed many shortage.Some scholars and expert thought it exposed influence to theChinese stock market and in the meantime , distortion of stock price index appear.Because there is blemish in the index calculation,a little tradeable public share evenenlarge the droping&falling of the index.First this text start with the basic function of the stock price index,get theconclusion that stock price index in China lost its basic function.Second,The angle analyzed the influence that split share structure expose uponthe listed company in the point of Corporate Governance, The angle that this textmanages from the company analyzed the ownership of a share influence of theabruption upon the listed company, and analyze why compared with the listedcompany of developed area.,Chinese listed company express many dissimilarities.Third,distortion of stock price index is harm to the development of the stockmarket. This text takes the Shenzhen Constituent stock index as an example, computeindex level under all-tradeable circumstance,by using CAPM model, measuringincome-risk level under the both all-tradeable circumstances and non-tradeablecircumstances .Draw a conclusion that under non-tradeable circumstances, theinvestor acquired smaller income,while undertaking more risks. financial classic workhas been believing that the income should match the risk .But Chinese stock marketbreached this rule.When china's economic restructuring and stock market develop to today, thestockholder's rights split already become the root of the China's stock market thathave the multitudinous problems, also became the biggest barrier which resteicts theChina's stock market further developed, how to carefully solve the stockholder's rightsto split has become a big challenge which China faced on the basis of maintaining thebenefit of the shareholders and keeping the market steady.