The Impacts Of RMB Exchange Rate Fluctuation On China's A Share Market Price

Currency exchange rate is the price of exchange one country's currency with another country's currency, and it is determined primarily by the supplies and demands in the foreign exchange market. Stock price is the reflection of national economic development. The former is a response to economic ties between the nation and other countries, and the latter is the reaction to the national economy. Nowadays, the international economy is becoming more and more closely linked. For a open economy, the relationship of these two aspects has become a important process for achieving the national economic objectives. Especially for China, where a currency exchange rate system reform has just started shortly and the reforms of the domestic financial system are not mature, studying the links between these two aspects are more important.Along with the deepening of reform and opening up, the continuous development of market economy and financial markets, the RMB exchange rate and Chinese stock market will be linked more closely. In this paper, based on this reality, the beginning is working out a reflection pathway between the two according to the related theories, and then carrying out some empirical analysis of the data in China, then explaining the empirical results combined with theoretical and empirical analysis, and finally putting forward some reasonable suggestions based on the situation of China.