Study on the Foreign Shareholders Held Influencing on the Risk of Chinese Stock Market——Empirical Evidence From the PSM Method

This paper studies the all listed companies of Chinese stock market over the 2006-2010 period,which use panel random effects regression robust estimation,IV estimation and cross-section estimation and PSM method.In order to measure the risk of stock market,it’s has chosen the indexes of share price volatility,the stock returns and risk factor.And then explored the relation between the foreign shareholders held or foreign large shareholders directly owned shares with the risk of Chinese stock market that could significantly reduce the Chinese stock market risk.Study found that foreign shareholders held could reduce significantly the risk of Chinese stock market.