The Research On The Influence Of Non-tradable Shares Conversions To The Stock Market Volatility

During the 1980s’to the 1990s’, with the development of economy in our country, a lot of problems were recognized in the foundation of the modern corporate structure for our state-owned enterprises. Due to that, our government started a joint-stock reform among the state-owned enterprises in order to establish a modern enterprise system and improve the management level. Considering from the stability of the economy, the authorities planed like this:the original asset of the state-owned enterprises was classified as non-tradable shares, and the new issued stock could be traded while the old shares could not. This unique system had been fixed down from then, and that is also the origin of the equity problem in our securities market.Today, we can see that there are many unreasonable places for the system designed. However, this system no doubt promoted our country’s financial reform and caused a faster economic development. With the deepening development of the securities market, it slowly created a special fact that the same share has different prices and qualities, which made the stock market volatility deviated from the real economy and seriously damaged the core functions of the capital market.In the view of the problems caused by the system mentioned above, our authorities of the capital market began to play more attention and take some measures to figure out these problems. In order to promote the development of our state-owned enterprises and open the capital market further, the question that how to resolve the problem mentioned above was put on the agenda.This article follows the lines as below:The first part is the introduction, the whole content of which is the written framework. And then the none-tradable share conversations were presented in the second part, followed with the specific conditions of our securities market at that moment. As for the third part, the writer would do the theoretical analysis about our stock market, and the most important content of this part is the detailed description for the various factors affecting the stock market. In a word, the third part is the theory description which provided theoretical support for the next section. The forth part is the most important part of this article, the writer would build two empirical analysis models to prove that whether the none-tradable share conversations affected our stock market or not. The first is a multi-factor index model about the whole stock market, and the second model is based on the influence of the individual stocks. The last part of this article is some suggestions to the inadequacies of this extraordinary significance reform. The writer hoped that these suggestions would be helpful to solve some practical problems.