Research On Monetary Policy Effect Of Price In China’s Stock Market

How the monetary policy pass to stock market and what affection it products arethe mean contents of this text. We employ the empirical method to analyze the longand short time respective announcement effect in the domestic and internationalstudies. The whole text in order to solve the following two problems: One is to findout whether the monetary policy affects the stock market behavior in long time, itinvolves that different monetary policy objective is there any different impact on thestock market and different stock markets have different reaction to monetary policy;the other is to analyze whether the stock market have respective announcement effectin the short time. According to the study content, this text is divided into five parts.This paper’s foreword as well as the first section is summarizing of the researchproblems, involving summarize on theory and the analysis of actuality that themonetary policy affect stock market in our country. In the second chapter, we find theconnection between monetary policy and stock market by the empirical method. Inthis chapter, we put the stock market variable money market variable and controlvariable into the classical model---VECM model to analyses the problem after weconfirm that there are long stabilization connection among the variables. In the thirdchapter, we look money market variable as the variable out of model. In this part wemainly use event research method to analyses the infection which monetary policybringing to stock market. We choose swatches from dispersive monetary policy inour country between2005and2011, involving deposit loan interest rate and legaldeposit reserve rate. After analyzing in this part, we know that there is short timerespective announcement effect in our country’s stock market, at the same time, thereis also a problem of information leak on the money market. However these two kindsof phenomenon are not ubiquity. The last chapter gives us the main conclusions of thistext, and also points out some countermeasure suggestions according to theconclusions.