Bric Stock Market Internationalization In The Context Of Open Linkage Studies

Since 1980s, there has been a trend of liberalization of the economy. Many countries and territories open their markets and multinational corporations grows rapidly, which lead to a growing scale of international capital movement, a closer connection among every economies, and a more unified financial market. In such context, the security markets also appeared a trend of globalization. Up to now, almost all developed countries' security market has been opened, while more and more developing countries enter the group, which makes the relevance between different markets strengthened.In the context of security market opening, a markets stock price is affected not only by status of domestic economy, but also by the movement of markets around, which make the wave character different after the opening policy. Meanwhile, the attack of the same economic and financial crisis may lead to different extent of relevance among different countries. Some appear to be over-strong linkage, and some appear to be weak correlation. Although such situation can be attributed to the domestic status of economy, international reserve and so on, the different style of opening, different stage of opening and other causes are also important factors for the different relativity. The result and effect of the opening process, especially its influence imposed on the wave property and linkage character is truly a hot topic to discuss.So far, our security market is on the inter-stage of the opening process. How to select proper way and style of opening, construct appropriate opening strategy and avoid the attack, negative influences and over-strong linkage led by financial crisis are questions followed closely by supervision department and academic circle. So it is of great practical significance to analyze the linkage between developing and developed countries, discuss the factors and context that contribute to different extent of linkage, distill the experience and learn from the mistake and offer an opening strategy in the new context. This paper focuses on the opening of emerging security markets. The paper will pay attention to the linkage among countries and territories in the context of economic and financial crisis, discuss the development and developing law of such linkage with in crisis and non-crisis periods, objectively evaluate the opening level and the linkage with international markets of our stock market, and further offer suggestions for further opening policy and how to withstand global economic and financial crisis effectively. The paper is arranged as below:Chapter 1 is introduction. In this part, we will summarize the research background, explain clearly the topic significance, paper structure, methods, main points, general conclusions, and innovative points, which help readers form a general concept of this paper. The topic significance will be discussed both practically and theoretically,Chapter 2 focuses on the theoretical foundation of international security market linkage. We offer the presentation of related research findings both native and abroad, which include results on security market's wave property and linkage. Finally, the paper will introduce the correlation between market opening and international linkage among different countries and territories.Chapter 3 includes the series of theoretical foundation for our analysis. This chapter will start with the meaning and channel of security market linkage and then go on with a systematically organized presentation for the mechanism and features of modern financial crisis. Finally, it will detail the three crises we will concern in empirical analysis.Chapter 4 is the empirical research of international security market linkage within crisis and non-crisis periods. We will start to construct theoretical and empirical models for evaluation of wave and linkage, decide the samples, periods and statistic resources. Then we will come to the part of empirical research of linkage both within crisis and non-crisis periods. We will wholly analyze the linkage between BRIC countries and other countries and territories, and analyze the empirical conclusions.Chapter 5 is further analysis of the above empirical conclusions. We will analyze the causes of such empirical conclusions by turning to the development history, market environment and some other important factors.Chapter 6 is conclusions and suggestions. In this part, the paper will summarize the conclusions, further discuss the policy implications that the empirical results and causes bring us. It will pay attention to the problems of the opening process among emerging markets and offer suggestions to protect security markets from overly linkage.The general conclusions of the paper can be stated as follows:The linkage between BRIC countries security markets and other international markets may be strengthened during crisis periods. Our stock market's linkage with international markets is becoming closer and closer, especially during the recent sub-debt crisis. So what we should do in the opening process is to form proper opening strategy, currency strategy, diplomatic strategy, supervision strategy and market entity strategy, so as to withstand the risk factors that come along with the further opening. We also should avoid the negative effects of over-strong linkage, pay attention to international capital movement and protect our stock market from external attacks.