Margin Volatility Influence Of Empirical Research On The Underlying Stocks

Since it was founded in 1990,the stock market in china has made great development in just 30 years.However,the author affirms the development of China's stock market performance,we also cannot ignore the shortcomings of the stock market.These drawbacks in the main is the Chinese stock market lack of the corresponding stock short investment channels.After a long period of preparation,on March 31 in 2010,the pilot business of securities lending and borrowing launched in china.Margin Trading is a key initiative of the securities market in our country,and also in our country it is an important symbol of the maturity of a securities market.With the expansion of the underlying securities,securities lending and borrowing,as a kind of credit trading system in our country has made great development.On the basis of the performance of individual stock is the foundation of stock market's operation,so this paper attempts to study the impact of the margin trading on the underlying stocks,non-banking financial sector as an example.Non-banking financial industry,including the specific provisions of the brokerage,insurance,Internet finance,futures,trust,and equity financial sector.And its weight is second only to the Banking industry,is one of the most beneficiaries of the bull market,the stock is the decision of the strength of the ups and downs.Firstly,the paper expounds the research background and significance,the content of the paper and the research methods,as well as the innovation and deficiency of this paper.And introduces the basic theory of margin trading,including its origin and development and the main mode of function.Also it introduced the concept of the volatility and several ways to measure the volatility,and points out the factors affecting stock price volatility.Secondly,the paper clarifies the factors and mechanism of stock market volatility for the margin trading.And it discovers that the influencing factors of the margin trading are consisting of the main structure.Therefore,the analysis of the influencing factors of the margin trading to the stock market in China,we should not only to take into account the innovative business development of the margin,but also take the others factors of the margin into consideration.Through the above analysis,the article conducts empirical research.The time span of the data is from january 2013 to march 2017 and the sample is non-banking financial 32 stocks,adding stock liquidity indicators,yield indicators,growth indicators and other control variables.And then according to the actual control of the selected target different,will be divided into state-owned companies and non-state companies for comparative analysis to explore the effect of margin trading for different ownership enterprises.Finally,Based on the conclusion of empirical return,combined with the current status of margin trading,put forward policy recommendations.