The Impact of Margin Trading on China's Stock Market Liquidity

DOI

10.2991/febm-18.2018.45How to use a DOI?

Keywords

Margin; Liquidity; VAR

Abstract

Since securities margin trading has been started in China in 2010, it has promoted the diversification of securities trading in China. This article firstly combines the domestic and foreign existing researches to do a theoretical analysis of the impact of margin trading on the liquidity of China's stock market, and then selects the relevant data of Shanghai Securities 50 as a basis for the liquidity of the stock market. The influence of financing purchase amount and securities selling amount on the liquidity of SSE 50, to analyze the impact of margin trading on the liquidity of China's stock market.And then use the VAR model to study the effect of margin trading on the liquidity of China's stock market. The results show that the financing services can indeed improve the liquidity of the stock market, but the effect of securities lending on the liquidity of the stock market is not obvious. Finally, based on the results of the study, some suggestions are made for China's margin trading system.

Copyright

© 2018, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Jingjing Zhu
AU  - Yongjian Zong
PY  - 2018/12
DA  - 2018/12
TI  - The Impact of Margin Trading on China's Stock Market Liquidity
BT  - Proceedings of the Third International Conference on Economic and Business Management (FEBM 2018)
PB  - Atlantis Press
SP  - 191
EP  - 194
SN  - 2352-5428
UR  - https://doi.org/10.2991/febm-18.2018.45
DO  - 10.2991/febm-18.2018.45
ID  - Zhu2018/12
ER  -