Exploring the Influence of Short-Selling Mechanisms on Stock Price Fluctuations: An Empirical Study of China's A-Share Market

Tianrui Xia

doi:10.47297/wspceWSP2516-251907.20250902

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Exploring the Influence of Short-Selling Mechanisms on Stock Price Fluctuations: An Empirical Study of China's A-Share Market

Volume 9, Issue 2

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Exploring the Influence of Short-Selling Mechanisms on Stock Price Fluctuations: An Empirical Study of China's A-Share Market
Exploring the Influence of Short-Selling Mechanisms on Stock Price Fluctuations: An Empirical Study of China's A-Share Market
Changchun College Of Electronic Technology Business College, Changchun, 130000, China
Vol. 9, Issue 2, Pages: 42-47(2025)
Published：28 April 2025
DOI：10.47297/wspceWSP2516-251907.20250902
Accepted：

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Xia Tianrui.Exploring the Influence of Short-Selling Mechanisms on Stock Price Fluctuations: An Empirical Study of China's A-Share Market[J].Creative Economy,2025,09(02):42-47.
DOI：

Xia Tianrui.Exploring the Influence of Short-Selling Mechanisms on Stock Price Fluctuations: An Empirical Study of China's A-Share Market[J].Creative Economy,2025,09(02):42-47. DOI： 10.47297/wspceWSP2516-251907.20250902.

摘要

Abstract

Leveraging A-share market data spanning from 2016 to 2023

this research employs a difference-in-differences (DID) methodology to investigate how the short-selling mechanism affects stock price volatility. The findings indicate that the short-selling mechanism generally exerts a significant stabilizing influence on stock price volatility across the A-share market. However

this effect is relatively weaker among smaller firms.The conclusions of this study provide references for improving China's securities market trading system and legal framework.

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Keywords

references

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