A Study On The Effect Of "National Team",One Of The Emergency Response Mechanism During Stock Market Crisis

Stock market crisis refers to the price volatility of financial asset in the secondary market,which appears to be sharp and short crash of the stock market prices more intuitively.Stock market crisis emergency response mechanism is that when the stock market crisis happened,the instruments that the government can use in response to the stock market crisis legally in order to rescue the market and achieve a stable market.Stock market crisis emergency response mechanism includes four kinds of policy instruments.Among them,"capital injection policy" is a means which is widely concerned by the academics with its direct and efficient characteristics.The focus of this paper is the application condition of the means and its policy effects.The study of the "national team" market behavior is one of the "capital injection policy" means.This article first carries on the theoretical analysis,provides the theoretical basis for the"national team" to enter the market.The major reasons of "national team" in the market are resolving the temporary crisis,dissolving the systemic risk,dissolving the liquidity risk.Affecting the liquidity and volatility,aggravating herd behavior are the major effects of the "national team"into the market.Secondly,this paper analyzes the characteristics of the stocks that "national team" have owned.From a macro perspective,at the end of the third quarter by 2015,"national team" owns 50.56%of the whole market shares of funds,funds mainly concentrated in the financial industry,construction and transportation industry,especially in the financial industry secondary banking industry.From the distribution of funds,Treasury companies and Huijin companies are the main funds,with a similar ownership style that preferring for the financial industry and manufacturing;Ten major management plan and the five rescue fund has a relatively small amount of money,prefer manufacturing and other physical industries.The investment platform under the SAFE is affected by its own nature.The industries involved are relatively few and the funds are mainly invested in the financial industry.From the quarterly changes in the "national team" funds,the"national team" fund distribution is relatively stable and the "national team" funds have the strongest wiling of holding in the third quarter of 2015 which followed by a decline in the proportion of shares and stabilize the process.The "national team" funds' preference for the industry also maintained a relatively stable,indicating that the "national team" funds no significant signs of withdrawal.Thirdly,this paper makes an empirical analysis on the influence of the "national team"market behavior on the liquidity and volatility of the individual stocks through the structure of the DID model.The conclusion is as follows:(1)After the "national team" comes into the market,the market liquidity significantly increased.After excluding the influence of the whole market,the liquidity of the stock held by the "national team" was higher than that of the stock held by the"national team" 0.81870.So the net effect of the liquidity of the "national team" is positive;(2)After the "national team" comes into the market,there is no significant change in volatility across the market.The volatility of the stock held by the "national team" was lower than that of the stock not held by the "national team" 0.12234.So the net effect of volatility of the "national team" is negative.Finally,this paper comes up with some problems of the "national team" and also gives up with some policy suggestions.