The Research On Market Effect Of Folk A Share Private Funds’ Trading Behavior

In the early nineties, private security fund had been first emerged in mainland ofchina, but only in a gray area and not been known by the public. Entering the21stcentury, private security fund reached a small high tide. According to the Xiabin’s (2001)estimation, in2001, private security fund’s market value scale had reached7000-8000yuan. With the stock market downturn in2002, private fund’s size shrank much.However, the total scale was still of the6000-7000billion yuan. With10years ofdevelopment, no matter in variety or in scale, private security fund developed a lot, andfolk private fund’s development is rapid.Folk A Share Private Funds is the research object, and with the typical securitybusiness departments of seats as Folk A Share Private Funds representative. I combinethe Stock Exchange daily public information and the typical security businessdepartments of seats, and establish the data sample. Relying on the "Billboard", thispaper digs out the Folk A Share Private Funds trading behavior behind the market effect.This paper use Event Study Method, which is simple and effective, explains the marketeffects.Private equity fund research at present is relatively limited, and Folk A SharePrivate Funds research is few. This article can broaden the theoretical framework. Also,regulatory issues is still a big problem, this article on the Folk A Share Private Fundsstudy can help regulators to understand its transaction behavior under the effect ofmarket changes, so that, more rational regulatory policies could be put on the agenda.The paper is divided into four parts and five chapters as follows:The first part is Chapter I, which is an introduction section. This chapteremphatically expounds the research background and research purpose. It alsosummarizes and induces the literature of Folk A Share Private Funds behaviorcharacteristics, and puts forward the innovation of this paper as well as researchmethods.The second part is Chapter II, which is Folk A Share Private Funds behaviorcharacteristic theory part. In this chapter the author state some important concept, thatFolk A Share Private Funds to the concept, classification, characteristics, investmentstrategies, the current situation of the development and the contrast with the public offering fund. In detail, it makes a brief summary at the end of this chapter.The third part designs the private fund transaction market effect of trading behaviormodel, which is one main part of this paper. This section introduces the research methodthat named the Event Study Analysis method, and gives a detail explanation of thehypothesis, research object, research interval, normal income calculation, the selectionof private fund sales department and sample screening.The fourth part is Chapter IV, which analyses private fund’s market effect oftrading behavior and is also another important part of this article. Through the previouschapters’ foreshadowing, this section uses Event Study Analysis method and "billboard"data to finish the empirical analysis. It is concluded the private security fund’s marketeffect of trading behavior.The last part is also the last chapter. Chapter V presents conclusions and policyrecommendations. This chapter summarizes private fund’s market effect of tradingbehavior and puts forward relevant policy suggestions in the refinancing process.This paper gets the following3conclusions: Folk A Share Private Funds tradingbehavior on the financial market has significant negative effect, because the Folk AShare Private Funds transactions intervene make the stock market has significantabnormal volatility; Folk A Share Private Funds have disrupted the market order of thesuspects, that Folk A Share Private Funds’ intervention in stock price volatility often fallshort of manipulating stock prices; Folk A Share Private Funds manipulation is veryflexible and concealing. At the same time, this paper also puts forward three policysuggestions: strengthen the Folk A Share Private Funds supervision, strengthen theindustry self-regulation, and strengthen market supervision of public opinion.