| Since the block trading system launched the Shenzhen Stoock Exchange on February25th,2002and Shanghai Stock Exchange on January10th,2003,China begin to explore the standardization and marketization of block trading. In order to alleviate part of the pressure of restricted shares,the SFC issued the regulation"Guidance to the transfer and sales of restriction listed companies "on April20th,2008.This regulation made the block trading system become a new channel of reduction of restriction of restricted shares.made the deserted block trading system become active again.and also to some extent,alleviated the impact of lifting of the restricted shares on the secondary market.Domestic research on block trading focused on the block trading system, block trading liquidity discount,and the impact on the secondary market. This paper reviews the development of the block trading of Shanghai and Shenzhen A-share markets over the past10years, combs the changes of the block trading system.summarizes it’s characteristics and analyzes macroeconomic factors affected the block trading volume and price.This study focuses on the characteristics of the block trading of China’s A-share markets as well as the factors affected turnover. The characteristics can be concluded the following:the transaction is not active, a small amount of the transaction, GEM and SME is more active than the main board market, GEM and SME with higher discount rate, the agencies involved in block trading are not active. When to the factors affected the block trading transaction, we find that there is no significant linear relationship between the block trading monthly volume and the monthly released volume of restricted shares&monthly yield of the Shanghai Composite Index, while discount rate of the block trading monthly volume and monthly yield of the Shanghai Composite Index have significantly positive correlation. The monthly discount rate and monthly released volume of restricted shares don’t show the expected relationship.The monthly reduction amount of restricted shares and the amount of block trading show significantly positive correlation.Finally, we put forward two recommendations:attracting qualified investors to participate in block trading actively and improving the operating mechanism of block trading. |
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