Exchange Reform, China's Foreign Exchange Market Volatility And Its Impact On The Stock Market

After ten years' development, Our country foreign exchange market has got achievements of world interest, it plays more and more important role in national economy. 21st July in 2005 , our country started putting into effect taking marketplace supply and demand as basis, reference basketful currency carries out the system adjusting, having the administrative floating rate. Second half of the year 2005, it sustained appreciation of RMB, sustained bull market of stock market. After the exchange rate reform, how does our country foreign exchange market play, whether there is affect to the stock market becomes the theorists and the populace public opinion focal point question. Under this background, the author has conducted the real diagnosis research to this topic.This article in the reading massive related foreign exchange market and in stock market's literature material foundation, first has carried on the brief introduction to this topic research history transformation and the present situation. It has carried on the review to the domestic and foreign experts' research viewpoint and the method. It had pointed out formerly studied the characteristic and the existence question, for studied our country foreign exchange market property as well as between the foreign exchange market and stock market's relations has provided the theory model.Next, according to our country foreign exchange market exchange rate data and the stock market stock price index data, the author utilized many kinds of gauging device to collect after our country changes the foreign exchange market property as well as the foreign exchange market has conducted the real diagnosis research to stock market's influence. Through GARCH model changes our country foreign exchange market property to carry on the analysis, we has collected changes our country foreign exchange market validity to obtain the enhancement. Through the Granger causal relation examination, the association reorganization discussed the method to conduct the research to our country foreign exchange market after stock market's influence to obtain has collected changes our country foreign exchange market to have certain influence to the stock market at the same time, the stock market also to the foreign exchange market existence influence conclusion.Finally, empirical analysis of the conclusions, we gave have developed our country foreign exchange market a series of policies to suggest: One is the government adjusts the foreign exchange market; Two, the perfect stock market establishes the financial risk supervising and managing system.By testing a variety of measurement, this paper finds a more comprehensive and convincing conclusion study than before. To a certain extent, answering to the theoretical and real life. In draws the concrete conclusion in the foundation, this article proposed develops our country foreign exchange market a series of policies to suggest, we hoped in future it will be able to cause our country foreign exchange market to be more perfect.