Research on the Formatting Mechanism of Financing Transactions

Abstract

In the context of the rapid growth of financing transactions and the significant impact on the stock market, this paper analyzes the generating mechanism of financing transactions. On the basis of theoretical analysis, this paper puts forward the hypothesis that the real economy, monetary conditions, market operation and investor behavior can play a role in financing transactions through the two variables of securities firms' ability and financing demand. The monthly data of the A-share market in China from April 2012 to April 2016 is used as the sample data, and the empirical research is carried out through VEC model test. Based on the results of empirical research, this paper proposes relevant policy recommendations.