The Study Of Margin Impact On Stock Price Volatility Of Our Country

Margin trading mechanism in China from March 31,2010 formally introduced to the present has gone through five years. With the constant improvement of securities market, Margin trading of our country has made no small achievment.It update the deeply rooted investment philosophy of investors and transform their investment intention. At the same time, Investors enthusiasm for margin trading is also rising. But every coin has its two sides, the introduction of margin trading is no exception, it still has many problems. The development of financing and trading business are not synchronized. Relevant laws and regulations and supervision mechanism are not yet mature. And how does the Margin trading influent the stock price of our country. We should solve all these problems.In this article, through referencing and learning predecessors’　research achievements of margin trading, I put forward some innovations. I select data form January 4,2012 to December 31,2014 of margin trading of the Shanghai stock market. I also use descriptive statistics and empirical model to estimate to analysis of my research topic, I study the influence with the actual.According to the empirical research conclusion, I put forward some suggestions to ensure the sustainable development of our country.the research result shows that the margin trading can reduce the volatility of stock prices and the contribution rate of financing deal is higher. Because financing trading has developed rapidly. Its market proportion is higher. With the advancement of margin trading, the effect on stock is increasing.