| Margin lending, also known as fictitious transaction,is the fundamental of multi-level capital market. In March312010, Chinese stock market finally launched the pilot margin trading business, which ended the unilateral condition of our stock market and provide a totally new profit model to those market participants.This paper takes the influences of short selling mechanism to the market as a breakthrough point. The study is process in three parts. First, it indicates the origin, characteristics and differences between markets of the margin lending mechanism. Then, the paper empirically proved the impact of short selling in levels of market and stocks, by using Granger causality test and event study respectively. Last, it mainly summarizes the empirical study. |
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