China's Stock Market Risk Management: Case Analysis and System Optimization

The development of the stock market has important practical significance for market investors and the stability of the financial market. This article explores the problems in risk management in the Chinese stock market through in-depth analysis of three typical cases: the financial fraud case of Kangmei Pharmaceutical, the illegal reduction case of Zhonghe Titanium Industry, and the equity pledge explosion case of Dongfang Shanshui. Utilizing case analysis and regulatory system review methods, it identifies the root causes and proposes targeted solutions. The study reveals significant deficiencies in corporate governance and information disclosure, frequent market manipulation and insider trading, and prominent equity pledge risks. The key to reducing risks lies in improving corporate governance and information disclosure, strengthening market regulation, and standardizing equity pledge business. The conclusion indicates that optimizing the regulatory framework and market mechanisms is of great significance for enhancing the stability and transparency of China's stock market, significantly strengthening market stability and transparency, promoting its long-term healthy development, and protecting investors' interests.