Abstract
In March 2010, China's securities market began the trial of margin trading and ended the unilateral trading system since the operation of the stock market in China. It is an important milestone in the development of China's securities market. From 2010 to now, the scale of margin trading continues to expand, the quality of the underlying stocks is getting higher and higher, the regulation of the market is becoming more and more perfect, but how does it affect the volatility of the stock market in China? So far there is no uniform conclusion. This paper deals with the daily trading data of the Shanghai and Shenzhen 300 Index as an indicator of the volatility of the stock market, and uses the total financing balance and margin of the Shanghai and Shenzhen Stock Exchange as the margin trading index. This paper makes an empirical analysis of the impact of margin trading on the volatility of China's stock market. Samples range from March 31, 2010 to March 31, 2016, a total of 1643 trading days.
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