Research On The Impact Of Limitation System On Stock Price Fluctuation In China

As the lifeline of the national economy,the financial industry is an important lever to adjust the macro-economy.The stock market is an important part of the financial industry,the stock market is a place where liquidity is very active and a thermometer of economic and financial activities in a country or region.Whether the stock market is stable or not directly affects the stability of the financial market and the development of listed companies or even affects the currency liquidity and stability of the entire economic system.Therefore,a stable stock market can protect the interests and safety of investors and listed companies,improve the circulation efficiency of market money and give full play to the economic role of the stock market in promoting the overall economic development.The limit system is widely used in various countries' markets and is also an important mechanism to stabilize the market in our country.Since 2007,China's stock market has been facing severe shocks,from 2014 to 2015,under the background of loose monetary policy and reform,plus the positive and negative impacts of the leverage system and deleveraging policy,the stock market has seen a sharp rise and fall in a short period of time,causing panic and currency value fluctuations in the market.Therefore,the effect of limit system on stock price fluctuation has become a hot topic in academia.Under this background,this paper compares various GARCH models and draws a conclusion that EGARCH-M model is most suitable for describing the volatility of China's stock market,it also verifies the volatility of China's stock market by using the Shanghai stock exchange index return series and concludes that there is excessive volatility in China's stock market.On this basis,the empirical analysis is carried out by using the data of a shares in China's stock market,through the establishment of a mathematical model for testing,the result shows that the cooling effect of the limit system is not obvious.Finally,this paper puts forward some suggestions for maintaining the stability mechanism of China's stock market from the perspective of policy formulation and technical support.At the policy-making level,this paper suggests that China's stock market should enrich the restriction system,apply diversified stabilization mechanisms,and appropriately relax the restriction scope of the rise and fall system.At the technical level,it is suggested to establish a risk assessment and monitoring system to enhance the risk monitoring and management capabilities of the stock market,establish an efficient and comprehensive information base database of listed companies,ensure efficient and fair dissemination of market information,and further reduce stock price fluctuations caused by information asymmetry.