The Improvement Of Block Trading System

As a unique system in China’s securities market, the block trading system provides an effective platform for the transfer of Chinese Restricted tradable shares. With the advance of the split share reform and the advent of the era of circulation, block trading system will be function in a new dimension, which is convenience to cultivate qualified institutional investors and corporate mergers and acquisitions.In this paper, starting from the basic concepts of block trading system and then,from the perspective of economics, finance, we introduced the trading patterns, the pricing mechanisms of block trading system, the design goals and principles of the block trading system as well as the global developments of the block trades.Next, on the basis of the Shanghai Stock Exchange and the Shenzhen Stock Exchange’s every period normative documents, we have a view about the historical development of block trading system and understand the block trading functions in the real world, and the development goals and reform direction.On the basis of the latest trading rules and other normative documents of the block trading system about the Shanghai Stock Exchange and the Shenzhen Stock Exchange, we argued the block trading patterns, trading hours and the information disclosure. Compared with the United States, Europe, Japan, Taiwan and other countries, we analysis their similarities and differences, and provide reference for our country’s block trading system.From the practice of the block trading system, we argued the low transparency, market manipulation, and analysis its causes of these problems, and give a right direction about the reform of the block trading system.Finally, for the series problems of block trading, combining the basic theory of the block trading system, we recommend the measures of the improvements of the block trading system, and hope to be service to the reform and construction pace of China’s securities market.