Will share all-circulation affect market quality? —empirical research of Shanghai and Shenzhen security market

Non-tradable share reform has become one of important factors which affected capital market to sustain develop in China. Nowadays, non-tradable share reform is being comprehensively carried on to realize share all-circulation of the capital market in China. This paper established a bargainer strategy model considering share all-circulation of Chinese security market firstly, then got several hypotheses by analyzing volatility factors and deduced the impact of the share all-circulation to the market quality theoretically. Then empirical researched of these hypotheses based on the sample of 435 companies which had finished the non-tradable share reform, by which we can find that share all-circulation can exercise some influences on the market volatility.