The Research On The Correlation Between China Mainland Stock Market And American Stock Market

Since the1980s, financial liberalization and economic integration has made the trendof international capital flow increasingly obvious. Stock market has traditionally beenreferred to as the "barometer" of the national economy, as an important part of the financialmarkets tend to some extent, correlated with stock price react to fluctuations of the worldeconomy. In the early1990s, China’s Shanghai Stock Exchange and Shenzhen StockExchange has formally established. After more than20years of development, Shanghaiand Shenzhen two city have been growing rapidly and occupies very important position infinancial market in China. Since2007, the Subprime Crisis broke out first in the UnitedStates, and later evolved into a serious financial crisis, and led to global economicrecession, lead to great fluctuation in the global capital market. As our country is now oneof the emerging developing countries and opening to the outside world enhancesunceasingly on degree, therefore it is the worst-hit in the financial crisis.Based on the background of financial crisis, this article summarized and studieddomestic and foreign scholars on the basis of related research, on the basis of stock marketcorrelation theory, expounded the inner mechanism of China and America on stock marketlinkage, then make a detailed analysis on the basis of the whole process of time segment ofthe financial crisis, using VAR model, ADF test, Johansen test, Granger causality test,impulse response function and variance decomposition, etc., the writer focused on theShanghai composite index and the S&P500index system of empirical analysis, andcombining with theoretical analysis to obtain the results.United States is to be reckoned with. Since the financial crisis, stock market linkagesbetween the two countries strengthen greatly, several volatility market occurred. It isclosely related to the continuously open and development of the capital market in China, but the financial crisis is more difficult to escape. In this paper, the studies of correlationbetween the stock market in mainland China and the United States still have defects, but Ihope for providing a reference on the future direction of development and mature of capitalmarket in China.