Research On The Prevention Of Systemic Risk In The Stock Market

The investment risk is inherent and absolute when the stocks are exchanged, the risk and profit opportunities are inseparable. So the investors in the stock markets must to do some value investment, to control your positions in a reasonable level, to adopt scientific risk management method, to control the risk in a reasonable range.This article described the risks of securities investment through the literature reviews, analyzed the evolution of the system risk in our country stock markets, emphatically evaluated the measures according to the system risk in the crash. Besides, it statistically analyzed the dates, such as the P/E ratio (price earnings ratio) of Shanghai and Shenzhen stock markets, margin-trading and other dates, and compared with the stock markets in Europe and the United States, Japan, Chinese Taiwan and Hong Kong, and others. Finally, some optimized suggestions are put forward on the prevention of systemic risk.Through the research,we can draw the following conclusion. First, imperfection of supporting policy in the stock market and irrational investmentnon of investors is one of important causes of the crash. Second,the systematic risk is inevitable and unpredictable, but it can be identified through the changes of some indexes, and we can take some measures to prevent the investment risks. Third, cultivating rational investors and promoting rational investment can reduce the impact of blind investment to the stock market system risk, to avoid the systemic risk of the stock markets happening again.