An Research About The Impact Of Margin Trading On China's Security Market's Volatility

This year is the sixth year to carry out margin trading business, its position in China's stock market is becoming more and more important. This context will study on margin trading's impact of the volatility on the stock market.Therefore, at first,this article combined with China's first stock market current actual situation, summarizes the research background and significance, research methods and ideas. At the same time, we analyzed the main points of these documents. In addition, we study the current major basis of relevant theories, and the margin of these mechanisms into the framework of the analysis. Based on the margin overview and theories to sort on, focusing on the financing and margin trading is how gradual impact on the stock price. Next, the paper summarizes and analyzes the market background of overseas mature capital markets of margin trading, trading patterns and the main features, including the most representative and learn the meaning of the United States, Hong Kong, Japan, Taiwan.Based on the reference to the above-mentioned foreign capital markets about margin trading, the paper focuses on the margin trading in China of the development process, development status and existing problems. In the empirical research part, we select the representative CSI 300 Index as an indicator of stock market volatility, because this indicator has a strong correlation and representation. Meanwhile, since after the implementation of margin trading, margin trading system and operation mechanism is not perfect, so the selected data is the development of margin trading to a certain extent, the use of these data for empirical analysis and testing more in line with China's specific situation. Then these time series were stationary test, each VAR model in finance and stock market volatility, trading and stock market volatility, and the Granger causality test. In the final chapter of this paper, the problems and empirical analysis of the conclusions of the organic combination, to analyze the results of policy advice targeted for regulators, securities firms and investors have a certain reference value and positive significance.