Research On The Structure Of Investors In The Secondary Stock Market In China

A reasonable investor structure is of great significance to the stock market's stable operation.We found that the shareholding ratio of individual investors in Chinese stock market kept declining and is now very close to the level of US.Considering of major shareholders and professional individual investors,individual investors' shareholding ratio in China is now at a reasonable level.Shareholding ratio of investment management investors in China is much lower than that of US and Japan.Compared with US,it has the same structure but lower holding ratio of institutional investors.Insurance investors' shareholdings have shown an overall upward trend in China.Although the proportion of overseas investors in China is small,it focuses more on value investment.Furthermore,we found that insurance and overseas investors significantly reduced market volatility,and investment management investors increased market volatility.We researched public funds from the perspective of the holders,and found that institutional-dominated fund can significantly reduce market volatility,but individual-dominated fund had the opposite effect.Funds with different holders' structures have the heterogeneity in stabilizing the stock market.According to our conclusions,We propose three targeted policy recommendations to build a more reasonable and mature investor structure,which can further promote the stable operation of China's stock market.