Research On The Interrelationship Between Investment Return Rate And Transaction Cost In China's Stock Market

As an emerging securities market,China's securities market has made great achievements through rapid development in recent years,which plays an indispensable role in promoting enterprise financing and economic development.However,in recent years,the performance of China's stock market has been unsatisfactory,and investors' return on investment has declined seriously.Investors are still bearing huge transaction costs while their income is declining,which is not conducive to the long-term stable and healthy development of China's stock market.This paper focuses on the various factors that affect the investment return and transaction cost,studies the relationship between them effectively,and puts forward reasonable suggestions.Firstly,this paper combs the current situation of the return on investment and the cost of securities trading,and clarifies the relevant concepts,influencing factors,realistic situation and historical changes.Secondly,this paper studies and analyses the status quo,historical changes and reform of transaction costs in other major foreign countries from two aspects of transaction tax and commission.At the same time,it compares and analyses the situation in China,finds out the similarities and differences among them and summarizes the experience.Thirdly,by choosing the data of Shanghai Fund Index from 2000 to 2018 in China's stock market,this paper studies and analyses the impact of the change of transaction cost on the return rate of Shanghai Fund Index,and uses descriptive statistics to analyze the impact of the change of transaction cost on the volatility of the return rate of Shanghai Fund Index.Research method(T test)and regression analysis are used to test the market return of Shanghai stock funds,to examine the change of excess return,and then to analyze the impact of transaction cost adjustment on fund return.Finally,based on the results of empirical research on the fund return rate by the adjustment of transaction cost in the securities market and the international experience,some policy suggestions on the cost adjustment of securities trading in China are put forward:(1)Continue to reduce the cost of securities trading,improve the return on investment of investors in the securities market,and attract more capital to the stock market.(2)According to the new market environment,new policies should be formulated,from the current transaction cost policy of circulation link to the charging policy of capital gains link.