Analysis On The Influence Of Margin Credit Business On The Stock Market Operation

Through literature research and field survey,this paper analyzes the impact of margin credit business on the development of China's securities market.Margin credit business is a mature market,the basic operation of the securities market,it is a credit transaction category.This means that investors can borrow money to buy securities or borrow securities from the securities dealers to sell,and then return the funds or underlying securities,which we usually say that the financing and securities lending.Margin credit business in the international market have already existed and developed for a long period of time,at the same time as China Hongkong,Chinese Taiwan,Japan,the United States overseas mature market laws and regulations and operating experience has been very perfect and standard.Reform in China's securities market is very urgent need to introduce the credit trading mechanism.This paper systematically summarizes the relevant theoretical basis of the margin business and analyzes the main trading mechanism of the current margin financing business through a large amount of literature review.Then the article analyzes the theoretical mechanism of the margin business from the theoretical point of view,and thinks that the margin trading and the liquidity of the securities business have an impact on the market,so that the stock price does not deviate from the true value of the stock Of the range of small fluctuations,stabilize the market.Then the paper analyzes the influence of the margin business on the operation of China's stock market by using the empirical method.Through the regression model,the paper analyzes the long-term influence and causality between the margin trading and liquidity of China's stock market,and concludes that when the stock market is in bear market or bull market or other cities,The long-term impact and causality of volatility and liquidity in the mainland stock market have changed accordingly.This paper analyzes the development of China's two-credit business from several aspects.In view of the fact that the development of China's current margin business is immature,we should further strengthen the supervision,improve the qualification of transaction,and improve the risk prevention of securities companies.Control system,improve the risk control system of investors,in order to promote the sustainable and healthy development of China's margin trading.