The Influence Of Margin Trading On The Volatility Of China's Stock Market

As of December 31,2019,margin trading has been launched in China for more than ten years,during which the subject stock of margin trading has experienced six expansion.In practice,margin trading not only gives more and more choices and space to investors,but also promotes the maturity of China's stock market.On the other hand,margin trading has its own leverage effect,which will enlarge profits or losses.How will margin trading develop? How to supervise the business in a targeted way and improve the supervision system of the two financing business in China?.In the academic circle,domestic scholars began to study the impact of margin trading on China's stock market,the level of research,the angle of entry,and the methods used in the past decade have been constantly innovative,and the academic achievements are quite rich.However,from the perspective of industry classification at the micro level,there are few related researches by scholars.On the basis of combing the existing literature,this paper studies and compares the results from two perspectives of industry classification and market as a whole,analyzes the impact of margin trading on the volatility of the stock market in different industries,and puts forward suggestions for the two financing businesses in China's stock market according to the conclusion of this paper.Specifically,first of all,in Chapter one,this paper summarizes the background of the actual research and development of this paper and collates the relevant literature of the impact of margin trading on the price of domestic stock market in detail,and puts forward the practical research and development ideas and application methods of this paper;then,in chapter two,it briefly introduces the concept,characteristics and the development of this business in China;then,in chapter two,it introduces the concept,characteristics of margin trading and the development of this business in China The third chapter focuses on the specific microeconomic structure analysis theory of the direct impact of margin trading on the price volatility of domestic stock market and the mechanism analysis of the direct impact of margin trading on the price volatility of domestic stock market.The theoretical results show that China's margin trading can effectively suppress the sharp fluctuations of domestic stock price;then in the fourth chapter,it is carried out in detail,systematically and in-depth Based on industry classification and market as a whole,taking the daily amplitude of sample stock as the volatility index(vol),this paper analyzes whether the stock price volatility trend of the processing group and the control group is consistent before the implementation of margin trading,then establishes a did model,estimates the model and advances the results Line comparison.Finally,in the fifth chapter,according to the classification of securities industry and the whole stock market,it presents the actual impact of the two financing businesses on the volatility of China's stock market and draws a comprehensive conclusion.It summarizes the impact of the stock market price volatility in different industries by the margin trading business,and combined with the current situation of the margin trading business system in China,puts forward the possible future development of the margin trading business Suggestions on direction and supervision of margin trading.Based on the whole stock market and industry classification,this paper uses the double difference model to empirical analysis and finds that the influence of the two financing businesses on the volatility of China's stock price is inhibition.In industry classification,different industries perform differently.According to the theoretical mechanism and empirical analysis of this paper,some policy suggestions are put forward: increase the number and types of underlying securities,balance the distribution of underlying stocks in various industries;improve the regulatory mechanism of margin trading,strengthen the regulatory of margin trading in hot investment industries,and prevent excessive speculation from causing severe turbulence in the stock market.