Research On Fluctuation Spillover Effect Of Market Index And Industry Index

Following the economic globalization and financial integration, as well as the global financial deregulation and communications technology continues to develop, capital flows are growing rapidly both in terms of the size or speed of movement internationally. Therefore, increasingly, all the countries also have stronger connections between their capital markets. Since the fast-growing Chinese economy and the development of our capital markets, enter into international capital markets is no longer a passive need for us and we should actively make use of an opportunity at this turning point, make the effective utilization of foreign investment and relying on in Renminbi RMB internationalization so as to form a huge financial system, capital markets are healthy and comprehensive development of our country. But the opening of capital account cannot happen overnight, needed in stages, steps to complete. With this idea, we launched the qualified foreign institutional investor (QFII), qualified domestic institutional investor (QDII) and RQFII respectively to allow our capital market enter into global financial markets step by step.Under such background, I using quantitative analysis of method and Eviews6software to analyzed three stock market index and sector index to fully understand how those series of policies which allowing us to connect with international capital market is worked.