Study On The Influence Of Margin Financing Business On China Stock Market

In March31,2010, Margin financing business was implemented formally in the inland. In order to understand whether it affects market noise component and the market validity, as well as how to influence. Firstly, the SSE50Index is the object of study in this article. An empirical study on the influence of margin financing business on noise component is by application of Granger test and VAR model. The results of the study show that:Financial transaction and Margin trading is the noise component of the Granger causality. Financing transaction aggravates market noise component, but Margin trading reduces the noise component. On the on the effect of noise, Financing transaction is than the margin trading. Secondly, that The Shanghai Composite Index represents Shanghai market and The Shenzhen Index represents Shenzhen market are the object of study in this article. Application of the indicator and inspection of variance ratio analyze the two stock markets of before and after margin financing business. The results show that:after margin financing business, the validity of the two stock markets changes.