A Comparative Study On The Effect Of Increasing Holdings In Each Sector Of The A-share Market

With the further development and maturity of China's capital market in recent years,the number of placard is increasing.Some new market factors,such as insurance placards,hot money placards and industrial placards,have a greater impact on the capital market.Under this background,China's capital market has some new characteristics: first,the number of placards has a leapfrog growth;especially in the second half of 2015,China's capital market appeared a round of "placards".The second is the increasing influence;some representative events make the issue of placard get the unprecedented attention of the society.Finally,the differentiation of the placards is deepening,which kind of investors in the A-share market placards which sector,seems to have the regular pattern slowly.But the specific pattern is what? How should all kinds of investors comply with the pattern to achieve their own purpose is still in the fog.Therefore,this paper will explore the potential pattern of increasing holdings in each sector of the A-share market.This paper discusses the short-term market effect of the notice of increasing holdings.First of all,this paper uses event research method to conduct empirical research on the wealth effect of placard events that happened in 2010-2017 in every sectors.And using the comparative analysis to provide theoretical suggestions for investors' investment activities.Second,this paper explores the factors that have a significant impact on the effect of the increase in the price of stocks in different markets.Finally,the author puts forward constructive suggestions to investors,listed companies and regulators about the placard.Conclusions are as follows:First,although there are differences between different markets,but the overall sample of placards' effect is positive in the short term.Investors are likely to get excess profits after the official announcement of placards.There are leakage of information in all markets before the official announcement,but only in small groups;until the announcement,this information is fully known by the market.The impact of raising stock price is temporary.It will go back to the original basic level after several days of the official announcement day.Different plates absorb this information at different speeds,and there is a certain degree of over-digestion.Second,if insider trading is not considered,the remaining investors of the Main Board,the Small and Medium Board,and the GEM can obtain an excess yield of 2.2553%,2.6583%,and 3.3222% on the day of the announcement;If insider trading is considered,the remaining investors of the Main Board,the Small and Medium Board and the GEM can obtain an excess yield of 4.8173%,6.1280% and 5.1550% in[-4,0],[-8,0] and [-2,0].Third,the main factors that affect the market response of the main board market is the degree of undervaluation of stock price,the degree of equity concentration and the percentage of placards;the main factors that affect the market response of small and medium-sized board market is the size,growth,equity concentration of listed companies and the percentage of placards;the main factors affecting the market response of the GEM market are the size of the listed company,the growth of the company,the degree of stock price balance,the degree of equity concentration and the percentage of placards.