Insurance Funds And Capital Market Interaction Theory And Empirical Research

As the economy grows, the continued, healthy and fast development of the insurance industry needs the support of the capital market. In turn, the development and growth of the capital markets also need the active participation of insurance funds. The interaction between insurance funds and capital market seems to be an inevitable trend. Then, what motivates the insurance funds to enter the capital market? How these two interact? In what way should china draw upon foreign countries'experience? This paper sets up a theoretical framework of the interaction between insurance funds and the capital market by researching conduction effects theory and testifies them by analyzing actual situations of other countries. And, it looks at the practical situation of interaction between insurance funds and the capital market in China from a theoretical point of view. Furthermore, it will make some common conclusions concerning the interaction between insurance funds and capital markets.