The Analysis Of Manipulation Behavior In China’s Stock Market And The Prevention Mechanism

Manipulation of stock prices is an illegal act. It may disrupt the order of stockmarket. China’s capital market has experienced years of ups and downs, but it stillbelongs to the emerging capital market, a lot of function is not perfect. As the windowof the capital market, whether the stock market can be healthy developed is related tothe stable development of the national economy. The healthy development of thestock market is also related to the effectiveness of the corporate finance, determinewhether the funds can be reasonably invested in high-quality companies, it can let thegood enterprises bigger and stronger, bad companies can not treat the stock market asan ATM machine.This paper analyzes the manipulation of stock market, and precautions fromregulatory bodies, investors, listed companies.The article first discusses the reasons of stock price manipulation, and the gameprocess of regulation and manipulation. This is the problems which should be solvedby regulatory authorities theoretically. Second discusses the characteristics of stockprice manipulation. On the basis of the previous chapter, then selects some indexeswhich sensitive to the manipulative behavior, and establish a screening model of stockprice manipulation. Finally, this paper propose preventive measures of market’smanipulation, the regulator should reduce regulatory costs, increase the negativeutility of dereliction, establish a risk monitoring system, the government shouldenhance the education of investors, regulate the behavior of listed companies andfoster institutional investors.