The Research On The Correlation Of Stock Markets At Home And Abroad Based On Improved Wavelet Coefficient Model

Since the program of reform and opening up, Chinese economic globalization process accelerate year by year, especially Chinese import and export trade volume Which replaced the United States as the world’s largest trading nation. The speeding up of economic globalization make China and the world economy getting closely, but the degree of connectivity between and the Chinese stock market and global stock market is not very strong. At the end of 2007 when the American subprime crisis broke up, all the foreign stock markets were all the way down. At the same time Chinese stock market, got from the highest point fell to low points. From here, there seem to be some contact between the Chinese stock market and the foreign stock markets. But after the subprime crisis,the foreign stock market, especially the stock market of developed countries and regions rose all the way, while Chinese stock market rose no percent within a decade.In order to know how much connection degree was between Chinese stock market and foreign stock market, this paper selects Shanghai and Shenzhen 300 index, the standard & poor’s 500 index, the German Dax index, the FTSE index, the HSI index, the KOSPI index and the Nikkei 225 index data from April 8,2005 to May31,2014, and uses the current relatively popular continuous wavelet analysis method to analyze the relationship between Chinese stock market and foreign major economies’ stock markets (Europe and the United States aspects include:the United States, Britain, Germany, in Asia, including:Hong Kong, China, South Korea, Japan).The analysis results show that Chinese and foreign stock market does not closely connect. Including that the correlation of Europe and the United States’ stock markets and Chinese stock markets is very consistent, which exists a certain degree of correlation on the long term (large scale), but on the short to medium term (small scale), the correlation is not obvious; Although the correlation between Chinese stock market and Japan, South Korea’s stock market was a bit stronger, but it was still not significant. The most closely contact is between Hong Kong’s stock market and Chinese stock market, whether it was a long-term, medium-term and short-term, They had a strong correlation. From the aspect of time, after financial crisis the correlation increased, and as the influence of the financial crisis gradually disappeared, while the correlation.