| With the rapid development of China’s economy, the stock market from scratch only 30 years of history, has become one of the world’s most important capital markets.However, before the introduction of margin trading business, "unilateral market" features a serious impact on the Chinese market investors rational allocation of investment resources.To change the mechanism drawbacks of China’s securities market, in March 2010 the official launch of margin trading mechanism,which is important to China’s securities market maturing process. a growing number of market investors found the characteristics,that the margin financing scale was showing rapid growth, however the margin size was showing slow development. Compared with overseas mature capital markets, our margin trading is still limited to low scale and other issues. To solve the problem of insufficient margin, in February 2013 after the turn trading business financing officially launched, marking the margin trading mechanism toward routine, driving margin trading A-share market to a new stage.Margin trading played a huge role in the fourth quarter of 2014`s hot market share, but it also raises concerns about the expansion of the size of the margin trading on margin market investors will likely bring dramatic stock market fluctuations. January 2015 the Commission for the two financial business of securities companies to carry out inspections, informed CITIC Securities, Haitong Securities, Guotai Junan Securities and other 11 companies in the two financial irregularities in the business, securities trading sector collective tumbled thereafter, financing margin trading system once again sparked the attention of investors.Articles introductory part begins with the literature, studying on the related literature both here and abroad and find that there is no unified conclusion on the affecting relationship of margin trading and stock market volatility. Therefore studying the influence on stock market volatility and the margin trading can provide better basis for investors and regulators. Section 1 introduces the basic concepts of margin trading, basic features, margin trading system in our country’s development process, and analyzes the risks of margin trading system exists,and explains the mechanism of margin trading impact on the stock market volatility. Section 2 briefly introduces the research methods of the affecting relationship between margin trading and stock market volatility,and there is an introductions on the relevant measurement tests described. Section 3 conduct the empirical test of the affecting relationship between the margin trading and the CSI 300 Index volatility. The empirical test methods include the use of VAR model estimation, cointegration and Granger causality test to measure the hypotheses, finding financing transactions affect the volatility of the stock market, then the impact of stock market volatility to financing transactions is also significant and then there is a relationship of one-way influence between stock market volatility and margin trading. Section 4 is a summary of the article section, making certain investment advice and supervision of the proposed combination of the relevant conclusions. |
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