Stock Index Futures, Empirical Research On The Impact Of China's Stock Market

China Financial Futures Exchange officially launched CSI 300 Stock Index Futures On April 16 2010. The Introduction of Stock Index Futures is going to have huge impact on the China spot market. Does CSI 300 Stock Index Futures have the function of price discovery? Does it have effect on improving the volatility of the spot market? Does it have positive influence on the development China stock market? All of these questions need answers currently.On the basis of a lot of literature and research results, we do empirical study on the lead-lag relations between CSI 300 Stock Index Futures and CSI 300 Stock Index by Granger causality test, and the impact on the spot market after the introduction of the CSI 300 Stock Index Futures by GARCH model in this thesis, using Eviews5.1 software. According to our findings, CSI 300 Stock Index Futures has the function of price discovery, and it reduces the volatility of the spot market to a certain extent. After analyzing the results of the empirical study, we make some policy recommendations with China actual situation.