The Impact Of “National Team” Shareholding On Stock Liquidity And Stock Price Volatility

Compared with many developed western markets,China’s stock market has a relatively late establishment time.There are many aspects for improvement in terms of system construction and market supervision.The limited rationality of investors will also aggregate market’s fluctuation.During the stock market volatility in 2015,the Chinese A-share market was accompanied by severe volatility,and the market liquidity contracted sharply.In order to alleviate this capital market crisis,the government intervened and adopted a series of measures including the government bailout fund represented by China Securities Finance Company.Some Chinese scholars have studied the impact of the purchase of stocks by “national team” in the stock market volatility on the liquidity or volatility of the stock in 2015.In 2016,the stock market has maintained a steady stock market value of around 3 trillion.Taking into account the market value of the bull market in 2015,the current national shareholding is even higher than the market volatility in 2015,still plays an important role in the capital market.The research shows that the “national team” ’s capital operation logic is similar to the leveling fund,“buy low and sell high”,so as to smooth the stock market’s rise and fall and iron out the abnormal fluctuation of the stock market.Due to the huge amount of funds owned by the “national team”,it also has a greater impact on the volatility and liquidity of stocks.This paper collects A-share market data from the second quarter of 2016 to the third quarter of 2018,and analyzes the liquidity and volatility of stocks and the “national team” positions.The research shows that the “national team” ’s capital operation logic is similar to the high level of the leveling fund’s low holdings,so as to smooth the stock market’s rise and fall and iron out the abnormal fluctuation of the stock market.Due to the huge amount of funds owned by the “national team”,it also has a greater impact on the volatility and liquidity of stocks.Usually the stocks with higher share ratios of the “national team” tend to have lower stock price volatility,while stocks with higher increasing proportion of “national team” tend to have better liquidity.This paper analyzes the impact of the “national team” on the liquidity and volatility of stocks,and discusses the impact to provide an empirical basis for the operation and exit of the national team,and provides investors with reference,and suggest that the exit mechanism of the “national team” should be studied,an open and transparent operation mechanism should be established,the communication mechanism between the internal entities should be strengthened,and the “national team” holding the stock target should be optimized.