A Study On International Securities Investment And Internationalization Of Chinese Securities Market

Since the1980s, economic globalization has been an irreversible evolution of a global trend. With the acceleration of this trend, international capital flows have taken place many new changes that cause significant influence on the structure of the internation security markets and result in the internationalization of the securities market as the trend of development among security markets around world today. In30of China’s reform and opening up, the national economy has maintained sustained, rapid growth, China has become one of the countries that full of attractive to all international capital. China’s securities market have injected great vitality for China’s economic development and reform, as well as have played an active role in the introduction of international capital through multiple channels.after China’s accession to the WTO, China’s securities market will speed up the internationalization of the process and enhance the level of internationalization in China’s securities markets in higher strategic framework,broader business scopes, and deeper level of cooperation.This article focus on some issues of the internationalization of China’s stock market which in the context of international capital flows, with a new, comprehensive, systematic, and dynamic vision. The full text is divided into six chapters:Chapter I, part of Introduction. We briefly Introduced the relevant background of the international securities investment and discussed the relationship of the economic globalization and financial globalization, and some issues about the international financial crisis in the context of the financial liberalization, then we Review and Outlook the China’s using of the international investments in securities. At last,We explained the meaning of thesis research and the innovation of this paper.Chapterll, the general theory and Review of the international securities investment and international securities markets. We Mainly introduced the concept of international portfolio investment, the basic characteristics and types and the general model of international securities investments.Then we reviewed the evolution and development of the relevant international securities investment theory, including the classical theory of international securities investment, securities investment modern theory.Chapter Ⅲ, the direct influence to China stock market under the International securities investment. We use the quantitative research methods to analysis the direct influence to China stock market under the International securities investment,from which we can see that there are many ways that international capital flows can influence the stock market, when a large number of international capital, rapid, direct inflow or outflow of the securities market, It will cause the rapid expansion or contraction of the securities market scale and market value. The stock market price’s large fluctuation is extremely easy to create the monetary disturbance.Chapter Ⅳ, the indirect influence to China stock market under the International securities investment-the linkage mechanism theory and empirical analysis. When the international capital adopts the synopsis the way to enter the stock market, The international capital may influence stock market indirectly, through the macroeconomic variable such as the exchange rate, the interest rate, the foreign exchange reserve, the capital formation and so on. We have analyzed the new characteristics of the international securities investment which by the detailed materials in Chapter Ⅲ and chapterV. Finally we elaborated the major impact for the international stock market pattern and the development of the economic globalization.Chapter V, international portfolio investment in China’s securities markets and irrational behavior----based on the behavioral finance and game theory analysis.We mainly adopt a new paradigm of the life of the mainstream that people-centred to replace the paradigms of modern financial theory.we breakthrough the simple paradigm that only focused on a rational investment decision-making model of modern financial theory.and we studie investor’s investment decision behavior rule and the influence to the market price that created by the investor’s behavior, by the view of the "non-rationality or limited rationality" of the investor actual decision-making psychology’s. So we can describes the money market really. Chapter VI, the internationalization of China’s securities market. Because various countries have great differences in the economic basis, the system environment, the status, the opening idea aspect,the different country has used the different internationalization pattern,such as complete and direct opening, limited and direct opening, indirect opening,and so on. This chapter discussed specifically the pattern choice foe China stock market’s internationalization in the contex of our Chinese national condition. We reviewed and summarized the development condition and the inevitability of the intemationalizationfor China stock market and set goals, stage and the basic principle for the internationalization of Chinnese stock market. We carry on the choice to China stock market internationalization’s pattern in the foundation of the internationalization pattern of the overseas stock market. We proposed our viewpoint to the following question,such as the QFII,QDII,B stock’s market, development and localization of the sovereignty wealth fund.