Asymmetric Development Of Margin Trading

In 2010,the opening of securities margin trading introduced the short selling mechanism and financing leverage function to Chinese stock market.By investigating the periodical market changes of Chinese stock market and the exploration of structural breakpoint,this paper analyzes the current situation of securities margin trading development from the perspective of market volatility and multidimensional co-integration relationships.The study found that the CSI 300 index and the financing balance have undergone two structural changes after the opening of the securities margin trading service,while there is no significant breakpoint found in the historical margin balance.Combining the results above with the current situation where the domestic margin balance is less than 1%recent years,it is clear that the overall Chinese financial market and the margin trading market have experienced long-term asymmetrical development.So,what role do buying on margin and short selling play respectively in the development of Chinese stock market?Why did the Chinese stock market suffer from the 'stock market crash' in 2015 after the opening of the margin trading business?This study found that the buying on margin increased the risk of collapse in stock prices,while short selling reduced the risk.This conclusion provides a new reference for the balanced development of securities margin trading business and investors'trading restrictions.