Research On The Influence Of Institutional Investors On The Fluctuation Of A-share Stock Market In China

As an important participant in the stock market,the influence of institutional investors' behavior on the fluctuation of China's stock market cannot be ignored.Based on the current situation of China's stock market volatility and Behavioral Finance Theory,as a limited rational person,people have doubts about the role of institutional investors in stabilizing the market.whether institutional investors have irrational trading behaviors(noise trading behavior),and whether institutional investors as a whole and different types of institutional investors have any impact on market stability are the main research content of this article.To study the noise trading behaviors for institutional investors,this paper selects 84 sample stocks from the list of constituents of the Shanghai 180 Index from January 2013 to December 2016,Shanghai Stock Exchange Index and Shanghai Stock Exchange 180 Index to construct CAPM and BAPM models.Calculate the noise trading risk of the sample stocks and draw conclusions by comparing the differences in NTR values under different shareholding ratios.To research the influence of institutional investors on stock market fluctuations,this paper selects the stock market value of institutional investors from the quarters of 2005 to 2016 to establish VAR model,and analyze the influence of the total stock market value of institutional investors and the stock market value of different institutional investors on stock market fluctuations from the perspective of single phase and multiphase.In this paper,the main conclusions are: in China's stock market,institutional investors have noise trading behaviors,and they will aggravate market volatility in certain periods,and different institutional investors have different influences on stock market volatility and so on.Therefore,in order to reduce the fluctuation of China's stock market,in addition to continuing to expand the scale of institutional investors,the government should also optimize the structure,and pay attention to the development of long-term investment philosophy,to guide and encourage the differentiated development of different institutional investors.