The Research On The Effect Of Chinese Monetary Policy To Stock Price

In this thesis, we mainly study the effect of Chinese monetary policy on stock price in the theoretical and empirical way. With the rapid development of china, s stock market. The stock market has become an important channel for financing. More and more people are involved in the stock market and the relation between the stock prices and real economic activity become more and more close. Chinese government and policies makers have pay close attention to the relationship between the monetary policy and the stock market. So, studying the relationship between the monetary policy and the stock market has practical meanings.Firstly, analyzing the effect of money supply and interest rates on the stock price, and then comparing and summarizing the main study approaches in this field.Secondly, we empirically study the relationship between the monetary policy and the stock price from short-run and long-run. We use the event study approach examine the effect of rate interest policy and deposit reserve policy on the stock price in the short-run. We use the VAR model examine the long-run impact of money supply and interest rate on the stock price. We make a conclusion: the effect of monetary policy on stock is invalid in the short-run;the effect of monetary policy on stock is limited in the long-run.Finally,we present the conclusions . Making some suggestion on base:(1)Perfect monetary policy system. (2)Improve and regulate the stock market development. (3)Set up join-mechanism between monetary market and stock market, develop monetary market . (4)Speed up the process of market-oriented interest rates reform.