Analysis On The Impact Of Margin On Stock Market Fluctuation And Investors' Finance Risk

Margin as a securities market,a way of trading in Europe and the United States and other developed securities market has hundreds of years of history.In China,the margin trading business started late,March 30,2010,the Shanghai Stock Exchange,the Shenzhen Stock Exchange,respectively,announced that the March 31,2010 will be officially opened from the margin trading system,began to accept the pilot members financing Coupon trading declaration,marking the official start of China's margin trading business.Margin trading business in the A-share market launched nearly 7 years,the end of 2016,the Shanghai Stock Exchange margin of the number of stocks reached 506,the number of Shenzhen City,the number of financial bonds for the 403.Only from the number of shares on the list can be seen in China's margin trading business is very rapid development,from 90 in 2010 to 2016 in 909,the number turned 10 times.From the balance of margin,the Shanghai stock market from the initial ?5.85 million reached the end of March 2016 ?511.9 billion,the Shenzhen City from the initial ?740 thousand reached the end of March 2016 ?369.1 billion,just six years Time,margin development is very obvious,its actual effect on the market to be further discovered and tested.Based on the theoretical analysis of the mutual influence between margin trading and stock price,this paper puts forward that the margin trading business of A-share market may exacerbate the stock market volatility,and use Eviews software to select the Shanghai Finance,the balance of the securities and the Shanghai Composite Index Empirical analysis,through the pulse analysis and variance decomposition found that the financing transactions for the Shanghai Composite Index fluctuations and no effect,but strengthened,margin trading for the Shanghai Composite Index fluctuations have a modest effect,but the effect is not obvious,and mainly in the lag The In addition to the study on the relationship between margin trading and stock market volatility,this paper also classifies the underlying stocks with financial warning indicators Z as the classification conditions,and studies the underlying stocks with good financial position and financial risk.Found that for the financial status of the underlying shares,although the financing of the transaction can play a role in the inhibition,but the effect is not obvious,relatively speaking,margin trading in the suppression of stock prices made a clear contribution to the higher risk of financial stocks,Margin trading will significantly increase the stock price volatility.In addition to this paper will analyze the relationship between margin trading and stock price volatility,but also from another point of view,that is,corporate investors to participate in margin trading business point of view,mainly to analyze the business in the process of doing margin business may encounter what Risk,mainly for the margin of the unique risk of leveraged trading,the risk of forced liquidation and maintain the margin ratio of the impact of cash flow risk analysis,and then for business investors and other relevant parties to provide some suggestions.