The Research On Stability Of Security Market In China

China’s stock market has experienced22years of rapid development. Whether it is in the overall size of, or in the number of listed companies, it has been completely transformed. Since the opening of China’s stock market from the beginning of1991, China’s stock market has been accompanied by significant volatility, speculative atmosphere doctrinal basic functions of China’s securities market (investment and financing channels, liquidity) produced many unfavorable the impact is not conducive to the securities market by the stable and healthy operation and development. Today, the market value of the securities market is often accounted for a considerable proportion of the total economy. The market value of the stock market in China has reached66.79%of GDP, in2010, and even up to123.07%of GDP, in2007. This shows that to maintain the stability of the securities market is particularly important for the national economy. It is also for this reason, the past few years, the domestic scholars, this problem for the stability of China’s securities market has launched a lot of discussion, and made a lot of research.So far, the stock market stability, and do not have a uniform definition. Firstly, this issue of the securities market stability necessary combing historical background and related literature, and discussed in detail the meaning of the securities market stability based on combination of practical experience. Rather than simply the size of the stability of the securities market and the volatility linked. This is not available in the existing literature.Then, the article discusses, from a theoretical point of view the most influential factors-national macroeconomic performance and the relationship of China’s securities market securities market stability. Through different time periods (1991-2012;1997-2012), China’s comparative analysis of the securities markets and the relationship of the macro, we find two phenomena:the first is a poor correlation between China’s securities market and the national economy, this reflects partial deletion of the securities market as a "barometer" of the national economy function. The second phenomenon is the correlation of China’s securities market and the national economy was gradually elevated trend, but there has been no fundamental improvement. For these reasons, we turn to discuss the behavior of the investors in the securities market stability discussion.In the end of this paper, this paper examines the different time periods, the volatility of the securities market in China, and the S&P500index volatility in the same period a detailed comparison. Through empirical studies further validate the earlier conclusions.