The Empirical Analysis Of Relations Between China And The World's Primary Stock Markets

As the rapid development of economic integrative, the phenomenon of the world's economic integration and the expedition of world's capital fluidness. It has been shown in the stock market that the economies all over the world have a same trend. It is the symbol of maturity of stock markets that the stock market of one country has relation with that of other countries. From the viewpoint of international security markets, the world's primary stock markets have stronger relations among each other gradually. Because of the naissance of HS300 index, we can use the index study the relations of the world's primary stock indexes. We can get well and truly relations of the world's primary stock indexes.The paper tested and analyzed the relations between HS300 index and the world's primary stock indexes by VAR model, Granger causality test, impulse response analysis and Johansen co-integration test. The empirical results indicate that HS300 index has short-term relations with the world's primary stock indexes and long-term co-integration relations with the world's primary stock indexes. The world's primary stock indexes Granger cause HS300 index significantly except Nikkei Index. The Dow index and the Dax index in the world's primary stock indexes have deciding force to other indexes. FTSE100 index, Nikkei225 index, Hang Seng index also have an effect in the world. Auland index is influenced by other indexes. As the rapid development of economic integrative, the world's primary stock markets also incline to integrative. American stock market and Germanic stock market have more influence to the world's stock market. Thus, China's stock market has the same tendency with the world's primary stock markets in a certain extent. The capital market in China possesses a linkage with the world's capital markets and is influenced by them.