Analysis Of Leveraged Trading Impacts On China's Securities Market And Regulation Research

Leveraged transaction is an essential basic tool for the mature capital market.Leveraged transaction with regular control can enhance the liquidity of the stock market and reduce market volatility.On the contrary,the disorder development of leverage will accelerate the price bubble or over-depreciate the financial assets in the waves,and bring unpredictable effects to the stock market.During 2014 to 2015,China's securities market experienced a dramatic wave.Based on the statistic samples of CSI300 Index and margin trading,this article analyzed the leveraged trading impacts on market volatility and liquidity,and researched the long-term trend relationship between leverage capital scale and market quotations.Through empirical analysis methods,this article came to the following conclusions:First,leverage scale changed synchronously with the securities quotations and did not reduce the market volatility.Lacking of short selling mechanism,margin trading did not play the role of stabilizer in the fluctuations.Secondly,leveraged transaction on exchange is not the main reason for the abnormal quotation fluctuations.When participating in securities trading,common investors taking their own funds or OTC leverage tend to take more radical policy than those on exchange.Third,there exists a long-term trend relationship between leverage capital scale and market quotations.The history information of CSI300 Index and the balance of securities settlement funds will promote the prediction accuracy of the margin trading scale on exchange.At last,based on the business risk analysis and experiences in oversea markets,this paper provides proposals on business supervision,risk monitoring,investors appropriate management,margin management and collaborative regulatory.