| Monetary policy transmission mechanism is the transmission channel through which the monetary policy affects real economy.Even more, it is the basis on which the monetary could work effectively. Whether it unobstructed directly related to the implementation of monetary policy and the contribution to economic. The traditional monetary policy transmission mechanism has interest rate mechanism, the credit mechanism, and currency supply mechanism. As the time goes by, finance market grows very soon and security market has become one of the most important parts of it. Recently, the security market has great influence on entity economy. In recent years, academia pay more and more attention to the stock market research, and monetary policy transmission mechanism of the stock market has become research hot spot.After20years of exploring, China’s stock market under the market economy system already holds an important position, the influence of getting grow on monetary policy transmission in gradually deepened. However, the state-owned shares and legal person share can’t listed circulation in a long time because of historical reasons, the stock market exist circulation stock and non-circulation stock in the same time, the phenomenon of equity division seriously distorted the pricing mechanism in stock market, which make the governance structure of listed companies is not perfect, so that go against the healthy development of the capital market,not only make the relationship between monetary policy and the stock market but also make the relationship between the stock market and real economy not solid. In April2005, our country started the prelude of reform of equity division, it opened the chains which shackle Chinese stock market’s further reform and opening and stable development. In the meanwhile paving the way for the Chinese stock market which deeply influenced it. It is the critical period that China’s economic system reforming and the stock market developing, focusing on the research of equity market transmission mechanism has the important theoretical and practical significance for perfecting and regulating our monetary policy and stock market.This paper first introduce the background and significance of selecting this subject, reviewing the current studies home and abroad, as well as introducing the research method and structure. Then it introduces the theory of monetary policy transmission mechanism in the stock market, analyzes the general factors which make influence on monetary policy transmission mechanism in stock market. And then summarizes China’s reform equity division, summing up impact of equity division to stock market, beyond that,analyses the beneficial aspects that the reform of equity division may bring. In the empirical part, this paper performs empirical research on monetary policy transmission mechanism in stock market respectively before and after stock reform with the help of Eviews6.0. We use JJ cointegration and granger causality test to analysis a stable relationship, and use impulse response and variance decomposition to analysis dynamic relationship between variables through the establishment of the VAR model. In the situation of before changing we found that, monetary policy’s two intermediary variable (interest rates and money supply) has certain influence to the stock market, but the effect is not very significant. The relationship between interest rates and share price index is direct proportion which is not in conformity with the general economics principle. While in the external transmission phase, wealth effect and investment effect don’t exist. After changing we found interest rates and money supply can affect stock markets which demonstrate the unobstructed in the Internal transmission phase. The reverse causality between them in line with the economics principle, just opposite the pre-analysis. But, the external transmission mechanism still is not significant. At last, we make comparative analysis between the two slot, concluded that the internal conduction channel unobstructed, while the transmission effect in external transmission channel is very limited.That is to say, the reform of equity division doesn’t make dramatically improved to the transmission of monetary policy. To the problem, we analyzed the reason.According to the theoretical and empirical analysis, in order to improve the efficiency of monetary policy transmission mechanism in stock market, this paper proposes some suggestions:(1) Perfect monetary policy control system. We must speed up the interest rate marketization reform and flexible using of monetary policy tools, from the source to solve the problem of poor monetary policy transmission;(2) Regulate the development of the stock market. optimistic about equity division reform, so as to continuously improve the intermediary of monetary policy transmission mechanism;(3) Promote integration process between the money market and the stock market. To speed up the flow of capital in two of the media, so as to improve the efficiency of monetary policy transmission. |
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