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The Impact of Margin Trading on Stock Volatility: Based from 2014 to 2016 Shanghai and Shenzhen 300 Index

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  • Chuanyang Gong

Abstract

The paper study the impact of margin trading on the volatility of the stock market, We selected 469 observation values among the daily Shanghai and Shenzhen 300 index from May 2014 to March 2016. the Granger causality test results are obtained for the model. Empirically study shows that one of the factors affecting stock price fluctuation does include margin trading business, and shows a negative correlation, which plays a more stable role in the stock market.

Suggested Citation

  • Chuanyang Gong, 2023. "The Impact of Margin Trading on Stock Volatility: Based from 2014 to 2016 Shanghai and Shenzhen 300 Index," International Journal of Business and Management, Canadian Center of Science and Education, vol. 16(7), pages 1-32, February.
    • Handle: RePEc:ibn:ijbmjn:v:16:y:2023:i:7:p:32
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    References listed on IDEAS

    as
    1. Ekkehart Boehmer & Charles M. Jones & Xiaoyan Zhang, 2013. "Shackling Short Sellers: The 2008 Shorting Ban," The Review of Financial Studies, Society for Financial Studies, vol. 26(6), pages 1363-1400.
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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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