Research On The Stock Market Volatility Effect Under Positive Feedback Trading Mechanism

The arrival of the era of fictitious economy has undoubtedly promoted the development and prosperity of the world economy,but there are still many risks behind it.Usually what we understand in the fictitious economy refers to the narrow sense of fictitious economy,the stock market,the stock market financial products and other financial assets of the movement,but with the deepening understanding of virtual economy,generalized fictitious economy came into being.Generalized fictitious economy is not only an extension of the traditional concept of fictitious economy,but also an important part of China's socialist market economy.The traditional object-ism economic thought emphasizes the important role of materialism,ignoring the factor of people in the social economy operation,which is not accurate,need to be improved.And the generalized fictitious economy is to consider the factors which put people into the economic operation analysis as an important factor of social development to study.However,from the perspective of the development of the generalized fictitious economy,theory system is still in its initial state and the analysis of economic and financial problems via the generalized virtual economy is relatively deficient,still there is a great development space for research of the generalized virtual economy as well as the analysis of the problem from the view of the generalized virtual economy.China has gained rapid development since the reform in opening up economy and the rise of China attracts the world's attention.There's always to say that stock market is a barometer of national economic development while the development of the stock market and economy of China show consistency,but due to the particularity of the existing system,stock market volatility and economic development is not uniform.That's to say,the situation of economic development is usually steady,but the stock market often turmoil as well ad the price often deviated from its value,whose particularity is worthy to further research.In terms of the current situation of China's stock market,for example,the introduction of bailout policies,including the fuse mechanism,short mechanism have failed in the the stock market crash in 2015,and the reason of the failure is worth considering that there is a difference between the results of the rescue of the western capital market.What's more,Since 2017,especially in May,the stock market has not reached the state of collapse while the stock is not the first decline in the storm,so the stability of the stock market remains to be improved.The stability of the stock market is closely related to the scale of fictitious capital,which is caused by the psychological factors and behavioral biases.So it is of a great value to study the volatility of China's stock market from the perspective of the generalized virtual economy,especially in the positive feedback trading mechanism.On the one hand,the humanistic thought is incorporated into the process of the material analysis,while on the other hand,it combines the narrow sense and the broad sense effectively.The research mainly shows that the stability of the stock market should start with the confidence of investors,guiding the stock price returning to the value,so that leading the non rational investors return to value judgment from utility judgment.Furthermore,it's necessary stabilize the capital market by stabilizing the confidence of investors,establishing a sign of statutory wealth,perfecting the financial market system,and defining the stock market wealth view in the new period.