The Study Of The Impact Of International Capital Flows On China's Stock Market

With the integration of the world economy, the integration of global capital markets is gradually accelerating. Since the 1980s, capital flows in the global financial market are more active。The international short-term capital has become the most dynamic force in the global financial market ,it has a strong impact on the configuration of the international financial resources in the global financial market, changes the efficiency of the country's economic operations , the variability and uncertainties of price signals and the demand and supply of various kinds of financial transactions have been markedly increased。With integration of China's economy with the world economy, the cost of capital controls has also increased, and the pressure of opening China's capital account is increasing. Gradual relaxation of capital controls, and promoting RMB convertibility, is China's objective choose to actively adapt to the export-oriented economic development and to adapt to the requirement of accessing WTO. At the same time, as an economic power, China's GDP has been ranked the fourth in the world, and the capital market has deeply developed. Especially in the first half of 2007, China's economic capitalization rate is, the first time, over 100 percent, China's capital market has more attractive to international capital. Along with economic and financial development of the continuous deepening of globalization, China's capital market will be more closely linked with the international capital market, but it may be more vulnerable to the impact of various factors in international capital markets. Therefore, in the opened environment, the study of the international asset allocation in China's capital market has realistic and necessary significance.