The Study On The Relativity Between The Stock Market And Bond Market In China

By adopting the combined method of empirical approach and canonical research, we reveal the principal of the relevant economic variables' effect on stock market, bond market and their relativity. Moreover, we put forward several policy recommendations on perfecting financial market.As to the relativity of the stock and bond market, we will verify through two levels --- the relevance of index and rate of return. However, currently according to the immaturity of Chinese market, the research on the index level is more valuable and more feasible.In order to explain the relativity theoretically, factors influencing the stock market and bond market and the principle of how they act on those two markets (simultaneously or independently) have to be thought over. In line with the theory of pricing stocks and bonds, we classify the relevant factors to three types: endogenetic factors (value-determined), fund-provided factors (price-affected), policy factors (system-impact). Then the research on the stock market, bond one and relevance of them will be developed depending on those three levels of factors mentioned above.In a whole, the study on the relativity of stock market and bond one will be divided into three steps:To begin with, we will create models focusing on the endogenetic factors, money supply and demand factors and policy factors of stock index to reveal the relationship between those factors and stock indexes. The research shows the long-term equilibrium trend existing between...