The Analysis of Short Sale Impactingon the Emerging Market Volatility

This paper shows the relationship between short selling mechanism of Taiwan market and the market volatility by the semi-parameter regression model.As a result,we find that market volatility is concerned about short selling transaction which means that short selling will definitely increase the volatility of the market.Secondly,based on the results of the study,this paper gives some advice to the establishment of China's stock market trading mechanism,and hope that it can used for reference by our being proposed short-selling mechanism.