Research On The Classification Fund And The Stability Of Stock Market

Chinese stock market was born in the 1990 s,at that time,it was for the state-owned enterprise financing services.But after the 2005,with the completion of the share reform,its development was swift and violent,the investment and financing function of stock market to support economic development has been further developed.However,due to the large number of small investors in Chinese stock market,the obvious effect of “policy market” and the existence of other factors,the situation of big price movement has often occurred.In the case of the nearest two years,from July 2015 to August 2015,there were two crash occurring,from 5178 down to 3373 points,from 4184 down to 2850 points,from November 2015 to February 2016,the crash from 3684 down to 2638 has happened.Just half a year actually happened three times crash in the stock market,which greatly affected the normal development of the market.Thus,to make our securities market healthy development,there is the urgent need for a large number of institutional investors,and Chinese securities investment fund is such a main force.How to play an important role of Chinese securities investment fund,which related to the healthy development of securities market,and then will affect the success of Chinese economic transformation,so Chinese securities investment fund impact on the stock market is becoming more and more important.With the accelerated issuance of securities investment funds,the type of issuance is also more and more abundant,the classification fund in recent years is one of the fastest growing investment products,structural design of different risk has attracted many investors,classification fund was born in 2007,in 2015 has issued 220,the overall size is also increasing rapidly.But with the stock market crash of 2015,class B shares of classification fund fell sharply,which exposed their own problems of the classification funds,and also exacerbated the stock market turmoil.Therefore,there is an important practical significance in the research on the future development of the classification fund and its influence on the stability of the stock market.In this paper,we study the effect of the classification funds on the stability of stock market from the two aspects of theory and empirical analysis.Firstly,from the theoretical analysis,based on the development situation of the classification fund and stock price fluctuation,we analyze the positive and negative effect of the classification fund on the stability of stock market from the perspectives of investment portfolio,trading strategy and scale effect.Secondly,from the empirical analysis,we mainly use the GARCH(1,1)and EGARCH(1,1)model to test the Shenzhen stock market stock daily return data empirically,and the data interval division is based on the classification fund's market transaction time,comparatively analyze the volatility of stock price before and after the establishment of classification fund.Empirical test results show that the introduction of classification funds does not play a stabilizing role in the stock market,but also exacerbate the abnormal fluctuations in the stock price,and leverage effect is also more significant.The main reasons for the failure of stock market stabilization of classification fund include the imperfect of stock market,the issue of the classification fund itself and investors' irrational investment behavior.In this regard,this article puts forward the corresponding improvement countermeasures from three points of view of the securities market,classification funds and investors,which can provide scientific guidance for the development of the securities market and classification fund.