Analysis About The Correlation Between The Capital Account Liberalization And Equity Market Price Fluctuation

Capital account liberalization tends to be the unanimous demand of all participants in China, including domestic ones, as Chinese economy is deeply being internationalized. This measure is curtain to boost the development of many industries. Knowing its effect for curtain industries is significant to make further plans to the future reform. And it' s difficult to know how that can be achieved generally, to avoid this embarrassment, this essay prefers to only one part of the whole market:equity market. By making clear what Capital account liberalization and equity market efficiency mean, and using the price movements of the A-share and H-share, the author analyzing the impact to domestic equity market efficiency after Capital account liberalization.After analyzing the difference between A-share and H-share,the author try to find the answer to the problem.Their difference and its influnce factors reflect the importance of capital account liberalization.In the end,the author sum up the influnce of capital account liberalization to equity market price fluctuation and give his advice to improve the efficience of the Shanghai stock market.