Empirical Research On The Impact Of China Monetary Policy On The Stock Price Index

Since reform and opening, China has experienced several periods of monetary policy adjustment. It is well known that monetary policy affects macroeconomic performance, while the stock market is part of the macro economy, is also a barometer of the macro economy. The stock price index reflect the situation of stock market. Therefore, monetary policy impact on the stock price index, to a certain extent, that the operation of monetary policy on macroeconomic control. Therefore, the study by the stock market impact of monetary policy on macroeconomic, capital market has very important significance.China’s stock market transactions carried out since the change in monetary policy, and related changes in the stock price index data, will help us to analyze whether the monetary policy impact on the stock price index, and impacting scale. This paper seeks to investigate the monetary policy effect on stock price indices, including the transmission mechanism, and empirical analysis, and finally put forward policy recommendations. Since the reform and opening up, China has experienced a period of adjustment for a number of monetary policy. Enacted by the central bank monetary policy affects macroeconomic performance, the stock market is part of the macroeconomic also macroeconomic barometer. The stock price index reflects the situation of the stock market. Therefore, the impact of monetary policy on the stock price index, to a certain extent that the control of monetary policy on macroeconomic performance. So, study the stock market by the monetary policy impact on macroeconomic, capital market has a very important significance.China’s economic strength has been to maintain the steady development, more and more important in the international capital market, especially the stock market, its impact will be more and more people’s attention. The time interval from2000to2012, China’s economy and the stock market a huge change, experienced a severe shock to usher in the challenges of the financial crisis that swept the world in2008, especially after booming in the economy in2007, followed by During the central bank repeatedly take monetary policy to intervene. The stock market is gradually entering the field of view of the policy-makers appear speculative in serious condition and the excessive decline in the stock market when the government has also taken a lot of measures to maintain the healthy and stable development of the stock market. This period to reflect the latest changes in China’s securities market and monetary policy, and is very representative.This paper studies the impact of China’s monetary policy on the stock price index. Stock index on the Shanghai index, because the view from either scale or representative, the Shanghai index can better reflect the situation of China’s stock market. Monetary policy implementation, including the ultimate goal of monetary policy intermediate target of monetary policy, the monetary policy transmission mechanism of monetary policy tools, the text is divided into different sections of monetary policy to make a study of the impact of the stock market and the stock price index, the first the chapter defined concept, introduced the traditional theory of the monetary policy transmission. The second chapter describes the way monetary policy affect stock prices, two main objectives:to use monetary policy money supply and the impact of changes in interest rates on the stock price index, in the first chapter on the basis of a more in-depth analysis of the monetary policy and The relationship between the stock price index. In the third chapter of this paper, the empirical study, through the use of the unit root test, cointegration test, Granger causality test, error correction model, VAR model and impulse response analysis and other means, to China in January2000to2012The December data analysis. Chapter IV of this paper is a summary of the policy recommendations section discusses the empirical test reason conclusions and policy recommendations based on the conclusions obtained, which mainly include implementing various measures, the good and the capital market The fast development. On China’s monetary policy transmission mechanism, in the formulation of monetary policy to pay attention to the prices of financial assets. To co-ordinate the development of financial markets, economic globalization is especially important.4. Monetary policy objectives should complement each other to play their respective due role.