A Study On The Effect Of Temporary Suspension System On The Inhibition Of New Stock

In foreign stock market,the new stock market after listing rises or falls;But in the Chinese stock market,regardless of the intrinsic value of the new listed companies,the vast majority will rise.In the first level market,the huge " new funds " accumulate;In the secondary market,in the early stage of listing,investors firstly rushed to panic buying the new shares in the early period,with a good expectation that new shares can get high returns.However,after a period of high growth of the first day and the period after the listing,the new shares gradually entered the decline of value,causing investors,especially those small investors who bought new shares in the secondary market in the initial market,had to make up their minds.In order to protect the interests of small investors and to suppress the speculation in the secondary market,Shenzhen stock exchange issued a notice on strengthening the risk control of small and medium-sized enterprises on the first day of listing on September 13,2006,which firstly proposed the temporary suspension system on the first day of listing.Since the first day of the new shares listing system is in continuous change since its inception,this paper studied two changes on March 8,2012 and 13 December 2013.The two changes,whether from the threshold or time,are more stringent than the interim suspension system,more attention to the market.In this paper,736 stocks listed in the A-Share market from January 1,2011 to June 30,will be divided into three groups,first use the basic theory of behavioral finance to analyze the reasons of the initial abnormal behavior,summarizes the first day of temporary suspension system inhibition of speculation behavior,and then select cumulative return,cumulative abnormal return as the test indicators.Finally,the t test is used to test whether the change of cumulative turnover rate is significant.Using symbolic rank test to test whether the change of cumulative abnormal return is significant;Using the GARCH model test to test the average abnormal return rate of the average abnormal rate of return on the stock market of one trading day before and after the first day of trading.The results show that the temporary suspension of the first day of suspension did not very good to the expected inhibition,it is only a hard limit on the first day of speculation,not very good control of investors' mood,but delayed the outbreak of speculation,this paper puts forward the corresponding countermeasures.