The Study Of Securities Margin Trading Impact On China’s Market Volatility

For the introduction of margin trading what can bring to the stock market, it is a controversial subject study both abroad and domestic research.Most of the research results show that the margin trading is helpful to restrain the share price volatility, and improve the stability of the market,speed up the capital flow between securities market and money market. Some studies also suggest that margin trading can increase market further rose or fall when market rose or fall, exacerbate market volatility to some extent, even bring disaster.In view of our country securities margin trading has its own features, so it is not reasonable to generalize with foreign mature market research results. We select Margin trading in Shanghai and Shenzhen market as the research object, from two aspects of theory and empirical analysis of China’s credit transactions influence on volatility of market. Hope to get reasonable results provide theoretical reference for the further development of margin trading mechanism.At first, the article to do a brief summary about margin development history at home and abroad, and a summary of research results both at home and abroad were reviewed in this paper, put forward the research background and significance of this article. Then summarize margin trading from the characteristics and patterns, as a theory support of later empirical. The third part describe margin trading mechanism, and discussed from financing and margin trading on the fluctuation of market mechanism, found that both finance and margin trading business in mature markets are good to improve the stability of the market. The fourth part makes an empirical analysis on the research object, through the establishment of the VAR model and Granger causality test, J-J Co-integration test, impulse response analysis. The article made a comprehensive analysis about the variables, and has made the related summary and explanation to the empirical results. In the fifth part, with the basis of the above theoretical research and empirical research, we put forward the conclusions and policy recommendations. It mainly include: further enlarge amount of underlying securities. Increase the varieties and levels of underlying securities. Reduce transaction expense. Improve the service efficiency of capital, as well as to adjust T+1 trading system.