Research On The Impact Of Margin Trading And Securities Lending Business On My Country's Securities Market

Margin trading,also known as "stock trading," refers to the activities that investors pay a certain amount of security and borrow funds from securities companies that qualify for margin financing and securities lending to buy securities or borrow securities.After meticulous preparations for about four years,on March 31,2010,China finally officially launched a margin trading and securities market opened a new era of "bilateral markets".After several years of development,China has carried out four expansions of margin financing and securities financing,and the volume of transactions has also gradually increased.From a theoretical analysis,margin financing and short-selling transactions have the function of preventing market volatility,stabilizing the securities market.From the period of 2015 to 2016 when the stock market in China was soaring and plunging,the margin financing and lending transactions have played a role in improving market liquidity,but their impact on volatility cannot be ignored.Therefore,this paper empirically examines the impact of the two financial transactions on the volatility and liquidity of China’s securities market.In terms of data selection,the growth rate of the daily closing price of the Shanghai and Shenzhen 300 Index is selected as the dependent variable,and the market oscillation index is measured by dividing the difference between the highest and lowest price of the day by the sum of the highest and lowest prices on the double day.The market liquidity is measured by the ratio of the total price of the stock or index to the return rate calculated from the closing price and the opening price.The VAR model analysis is conducted with the time of implementation of the Mobility and the time for the securities lending business rules changed,and the VAR model is analyzed in three time periods.It is found that although the securities lending has different effects on liquidity and volatility in different periods,the degree of The effect is different.Furthermore,based on the above data,this paper first uses Eviews 8.0 to test the stationarity of these three variables first,and finds that the three variables are stationary in all three phases,and then makes a pulse chart to test financing in three phases.The impact of coupons on volatility and liquidity is followed by the use of the Granger causality test to examine whether there is a causal relationship between the variables.The test concludes that the open margin financing and securities lending business is conducive to improving liquidity in all three phases.The results of the volatility test show that the changes in the financial meltdown business and securities lending business rules will have different effects on market volatility.Trading can only ease the volatility in the first stage of business implementation,but there will be intensify volatility in the later period.This is mainly due to the lack of investor rationality in China,and the lack of sufficient understanding and understanding of the two transactions.Finally,according to the actual situation in China,the author puts forward relevant suggestions on the issues concerning margin trading and securities lending transactions in order to optimize the securities market and protect the interests of investors.