Research On The Necessity And Feasibility Of Establishing China's Stock Market Stabilization Fund

Since the establishment of the Shanghai Stock Exchange and the Shenzhen Stock Exchange,the Chinese stock market has made tremendous progress in terms of financing scale,pricing efficiency,and information transparency.However,compared with developed countries,China's stock market is less effective,which is reflected in the large fluctuations in stock prices and the frequent fluctuations in the stock market.Moreover,excessive volatility makes the stock market's pricing efficiency lower and the financial system more fragile.Its negative impact has already affected the resource allocation and social stability of the real economy.Therefore,when the stock price fluctuates excessively,the government always tries to make decisions through the camera and weaken excessive fluctuations.In 2008 and 2015,the stock market disaster not only suspended the IPO,that is,suspended the financing of the primary stock market,but also caused many investors to suffer heavy losses.There may seem to be many ways in which the government can influence the volatility of the stock market and suppress excessive speculation,but they are all macro or indirect and do not have the advantages of directness,flexibility,and fine-tuning.This article uses logic analysis,time series analysis and comparative analysis.Specifically,it can be divided into the following five parts.The first chapter explores the origin of the stabilization fund,and defines the modern definition of the stabilization fund,and preliminary analyzes the characteristics and causes of the volatility of the Chinese stock market.Propose the idea of establishing the Chinese stock market stabilization fund and the significance of this paper.In chapter two,herding behavior explains the excessive fluctuation of the stock price in the secondary market.The theory of rescue market elaborated the suggestions of different schools for government intervention.And theoretical study on the feasibility of the stabilization fund.In the third chapter,we use the EGARCH model to describe the fluctuation aggregation,permanent memory,leverage effect and risk premium coefficient of the stock market volatility in our country.Therefore,to alleviate excessive volatility in the stock market is a public service need to be urgently resolved.It is necessary to create a stock market stabilization fund.The fourth chapter first elaborated the background of the stock market disaster in 2015 and analyzed the causes of the stock crisis,and summarized the similarities between the intervention of the stabilization fund and government funds.Prove that the intervention of government funds has weakened the cliff-shaped decline in the stock market.This shows that the stock market stabilization fund is feasible.Chapter 5 analyzes the connotations of various national stabilization funds,summarizes case experiences,and then constructs them from the purpose,establishment and use of the stabilization fund,funding source and scale,market entry criteria and external supervision,and operational strategies and exit mechanisms,structure the basic framework of China's stock market stabilization fund.The conclusion is that it is necessary and feasible to create a Chinese stock market stabilization fund.