| In the early 1990s,China initially established a stock exchange market,and the market style was based on guarding against the risk of large fluctuations,for which China stipulated that stock traders could only go long but not sell short.However,with the continuous development of the capital market,the prohibition of short selling has fettered the ability of the stock market to allocate resources.The financing and financing business has credit trading characteristics and market stabilization functions.Therefore,the regulatory authorities introduced this business in time to improve the construction of the stock infrastructure.However,in the course of development,the financing and financing business has appeared to aggravate market shocks during periods of stock price volatility.For this reason,policies related to financing and financing began to be tightened and the business continued to be in the doldrums.However,with the rapid growth of China’s economy and the rapid development of the capital market,the demand for financing and financing business increased significantly,and the financing and financing market gradually showed signs of recovery.in September 2021,the balance of financing and financing securities hit a new high of nearly 6 years,and investors regained confidence in the financing and financing business.Some industry insiders worry that the violent stock market turmoil will be repeated,but the strong pricing power can correct the stock price and play a role in stabilizing the market.Therefore,by studying the impact of financing and financing on the pricing efficiency of China’s stock market,it helps to provide a theoretical basis for financing and financing-related research,and also has strong practical significance for China to promote an efficient and stable capital market.To explore the impact of financing and financing on stock pricing efficiency,this paper analyzes both theoretical and empirical aspects.In the theoretical aspect,firstly,the relevant literature is sorted out and summarized.Then,based on the theory of stock price overvaluation,rational expectations hypothesis and noise theory,we further analyze the transmission mechanism of financing and financing on the pricing efficiency of stock market.In terms of empirical evidence,we first construct information content indicators and information lag indicators to measure pricing efficiency,and introduce daily market capitalization,turnover ratio and price-earnings ratio as control variables;because the fourth expansion is in the market volatility period,and the underlying after the sixth expansion covers nearly half of the stock market,which reduces the explanatory power of the regression results,we choose the fifth expansion,which is in the stable period and has an appropriate size of the underlying,as the experimental group for In order to ensure that the regression results are rigorous and reliable,robustness tests for replacing the explanatory variables,industry heterogeneity tests,propensity score matching and parallel trend tests are conducted to eliminate endogenous errors;finally,the mechanism of the impact of financing and financing on pricing efficiency is further explored through mechanism analysis.The following conclusions were obtained:(1)financing and financing transactions can improve the pricing efficiency of stocks;(2)the effectiveness of financing and financing business on improving the pricing efficiency of utility industry is not obvious.This is related to the characteristics of long construction period and complex mechanism of transmission in utilities,and the improvement of pricing efficiency by financing and financing in other industries.(3)Except for the inclusion of financing and financing securities,market capitalization,age of listing and turnover rate have significant effects on pricing efficiency,but the P/E factor rate has little effect.(4)The mechanism analysis shows that financing and financing securities significantly increase the stock turnover rate,which in turn improves pricing efficiency.Finally,based on the recommendations obtained and the current problems of financing and financing securities,we propose targeted and rationalized policy recommendations from three aspects: business regulations,regulatory authorities and investors.From the perspective of business regulations,it is proposed to expand the underlying of financing and financing securities at an opportune time,improve the trading of securities financing business and use financial technology to manage risks;from the perspective of regulatory authorities,it is proposed to strengthen market supervision,strictly control trading risks and improve the law-making to strictly prevent trading around the underlying;from the perspective of investors,it is proposed that investors need to strengthen professional knowledge and study,and it is suggested that investors focus on the index of changing hands. |
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