Research On The Influence Of The Fiscal And Monetary Policy On China Stock Market

The stock market as a barometer of economic development, its development and operation of quality reflect the speed and efficiency of economic development, and also subject to the impact of economic policies. The relationship between macroeconomic policies and the stock market is a hot topic of current research. In this paper, fiscal and monetary policy as a starting point, from both theoretical and empirical study of fiscal and monetary policy is the impact of how they affect stock market volatility, and their degree of impact.Thus, for the research objectives of this article, the contents of papers follow the following arrangements :(1) In the overview of research achievements at home and abroad have been presented based on the research paper ideas and propose the theoretical research.(2)In the variable VAR model to establish a series of tests and empirical analysis, and through Johansen co-integration tests, Granger causality test, impulse response function analysis, variance decomposition to analyze how the variables affect the Shanghai Composite Index. (3)The main analysis of the stock market right fiscal and monetary policy events of the reaction, and analysis of the fiscal and monetary events polarity cycle and the relationship between the stock market cycles. (4)The main conclusion of empirical findings and conclusions for these investors and the respective recommendations.Through the study found that in long-term,the Shanghai Composite Index and the money supply, stamp duty changes in the same direction ,financial institutions changs the reverse direction; in short-term,the cycle of Shanghai Composite Index relates to the cycle of the stock market's fiscal and monetary relationship incident; whether in long-term or short-term impact, the fiscal policy's impact on the stock market is greater than the monetary policy's impact on the stock market.