The Study On The Influence Of U.S. Quantitative Easing Monetary Policy Impacting On The Investment Of Chinese Listed Companies

In mid-September2008, Wall Street’s fourth largest investment bank Lehman Brothers Holdings Inc. filed for bankruptcy, shocked the global financial crisis which officially kicked off. Since the outbreak of the financial crisis, high risk of U.S. financial markets and serious decline of credit markets has made part of traditional monetary policy transmission mechanism based on short-term rates failure。In response to this particular case, the Fed launched an unconventional monetary policy instruments as characterized by "quantitative easing, liquidity assistance". Including the quantitative easing monetary policy which launched in November2008. Quantitative easing monetary policy has been implemented four, where in the first and second rounds have been completed, the third and fourth round began to gradually withdraw. Quantitative easing monetary policy is an innovative central bank monetary policy tools. By quantitative easing monetary policy the central bank will put a lot of money into the financial markets and the real economy. Ample liquidity in the financial markets to prevent the bankruptcy of systemically important financial institutions, to avoid systemic financial market panic. While financial institutions can ease the credit crunch due to the economic downturn, caused by the financial strain damage to the real economy. However, due to the Fed quantitative easing as the representative of a series of loose monetary policy, leading to global monetary liquidity flooding. China, as the largest holder of U.S. Treasury bonds, America’s second largest trading partner and the world’s second largest economy, either macro level or micro level will inevitably suffer huge direct or indirect impact. Chinese company’s investment activities and our exchange rate, money supply, price level, asset prices and monetary policy so closely linked. Therefore, the U.S. quantitative easing monetary policy can affect the investment activities of Chinese companies through a variety of ways over. This paper studies the relationship between the U.S. quantitative easing monetary policy and investment between China’s listed companies.The main spillover transmission channels of U.S. quantitative easing monetary policy are output and trade channels, exchange rate channel, interest rate channel, other asset price channel, channels, international commodity prices and policy channels. Whether the U.S. quantitative easing monetary policy through what spillover transmission channels impact on Chinese companies to invest, which will eventually be reflected investment opportunities in Chinese companies as well as changes in the cost of external financing. The primary goal of this study is to quantify whether U.S. quantitative easing monetary policy will affect Chinese companies’investment spending.The main innovation of this paper is as follows:Firstly, this paper studies the financing constraints and the international transmission mechanism of monetary policy affect Chinese companies’investments. Secondly, the use of micro-financial data of Chinese companies, examine the influence of U.S. quantitative easing monetary policy to Chinese companies’investment. Finally, since the United States to implement quantitative easing monetary policy, domestic quantitative study of the impact of quantitative easing monetary policy focused on the macroeconomic level, the impact on Chinese companies’analysis also rare. In this paper, the macro and micro research will combine to make up for this deficiency.The main conclusions of this study are as follows:Firstly, U.S. quantitative easing monetary policy for Chinese companies’ investment has a positive stimulus. Secondly, U.S. quantitative easing monetary policy to influence the effect of Chinese companies’ investment under different financing constraints have significant differences, higher financing constraints will weaken the effect of Chinese companies’ investment stimulus. Finally, U.S. quantitative easing monetary policy by financing constraints affecting Chinese companies’ investment.