Research On The Impact Of Securities Investment Funds On Chinese Stock Market Volatility

In order to improve the stock investment environment of our country, securitiesinvestment funds have been growing rapidly with the support of supernormal developmentpolicy, they have become a major investee, their investment behavior have a great impact onthe stock market of fluctuated. Although securities investment funds have made a greatcontribution in transforming savings, improving investment efficiency and improving thestructure of inventors, sometimes, inventors are still irrational in investment behavior, whichwould make a great negative impact on positive image of the securities investment fund instabilizing the stock market, then, people will question the significance of securitiesinvestment funds in the stock market. If we have deep knowledge in securities investmentfunds’ effect in stock market, it will help investors explicit development direction, promotethe improvement of the stock market, and it also has important practice value.In this paper, on the basis of summarizing the related articles at home and abroad,analyzing the positive and negative influence of securities investment funds in stockmarket,then they draw a conclusion that internal structure, herd behavior and positivefeedback trade aggravates the volatility of the stock market. In empirical analysis part, wemake the relationship between securities investment funds as main clues, demonstrates themutual influence of the two, under the guidance of behavioral finance and econometrics. Onthe macro-analysis, select the SSE180Index and SSE Fund Index study sample, followed bythe ADF unit root test, cointegration test, Granger causality test, we found that securitiesinvestment funds exacerbated the fluctuations of the stock market, and the same time, ourstudy prove that the one-way transmission relationship “investment behavior—fundIndex—market volatility” in the securities investment funds and the stock market. On themicro-analysis, first, we selected103Awkwardness stock for four consecutive years from2009to2012held by the Fund as a sample, and the establishment of the price volatility of thefund’s top holdings variable multiple linear regression equation empirical analysis, the result of the micro-analysis is that there is positive correlation between fund shareholding and stockmarket volatility. Second, we divided securities investment fund into growth, income,balanced in accordance with different investment styles. Research results showed that thebalanced fund can stabilize the stock market, growth and income type will exacerbate thevolatility of the stock market. Finally, According to the problems for the stock market, andsecurities investment funds, this paper give several policy suggestions.