The Development Of Chinese Stock Market And The Perfection Of Monetary Policy

The study about the relationship between the stock market and monetary policy has been the financial frontier. The2008’s global financial crisis and the stock market downturn, further caused political circles and academia’s attention.Monetary policy is to pay close attention to the stock market, and stock market on monetary policy conduction effect problem, will be certain to generation of our country economy, and how to handle the relationship between the two, and further improve the monetary policy to better serve the national economy, have certain theoretical and practical significance.This paper firstly draws lessons from the domestic and international about the stock market and monetary policy research results, and on the basis of this theory on this issue, carried on the simple elaboration. Secondly, the paper mainly from two aspects respectively for empirical research, one is the above card index as the research samples, using the event study method on the people’s Bank of China in2008eleven times to adjust the deposit reserve rate effect on the stock market analysis, found that adjust the deposit reserve rate on the stock market overall effect is remarkable, and significant a negative linear correlation, the deposit reserve rate adjustment lags far behind, and affected by many factors.In addition, the deposit reserve ratio adjustment in different industries have different effects in the short term. And this phenomenon, the paper gives the corresponding explanations and policy recommendations.On the other hand, using2007to2010Shanghai Composite Index as the research samples, and different variance identification method, in the system conversion framework focuses on the three major international time stock return rate with the rate of actual relationship. And the results of this study and the traditional interest rate-stock price theory are compared, stock return and interest rate generally negatively correlated. Suggest when the government formulate monetary policy can join the stock index returns as an important reference factor.In the paper uses econometric related new theory and new methods, such as the event study method and improved Identification through Heteroskedasticity by means of theoretical analysis and empirical research methods. The paper on the basis of theoretical and empirical research find that the monetary policy is an important channel. As an important financing channel, the stock market is the national indispensable important financial link. However, it is also a great risk if it is ignored. We can not avoid risk, but we can control the risk, one of the most fundamental is the perfect market system construction, according to the market rules to construction of our stock market.On this basis to strengthen the supervision, regulation of listed company and investor behavior, rather than through policy forced control. The central bank intendding to affect the stock market, should be the first choice of the interest rate policy tools. Monetary policy and stock market mutual influence, should continue to improve and standardize the development of the stock market. Only such, makes our country’s stock market and monetary policy implementation benign and interactive, and thus to further promote the healthy and orderly development of the national economy.