The Short-term Effect Study Of Monetary Policy Adjustment On The Stock Market Return Rate

China's stock market was established in early 1990s. It has been one of the most influential stock market in the Asia Pacific region after more than 20 years of development, With the accelerating pace of financial innovation and the deepening of the global economic globalization, the relationship between the stock market and the real economy is becoming more and more closely. The development of the stock market can advance the reform of the traditional financial system, promote the economic development, optimize the allocation of resources, it also can provide investors with a new investment channel. However, the volatility of the stock market produce adverse effects on the real economy, and bring severe challenges to monetary policymakers. Therefore, it is significant to study the relationship between monetary policy and the stock market. This paper study this question by using the high frequency data, hope to provide decision support for the monetary authorities in the formulation and implementation of monetary policy.This article uses the method of quantitative analysis, qualitative analysis, theoretical analysis and empirical analysis to deeply analyze the ways and mechanism of the impact of monetary policy on stock market returns from the perspective of high frequency data. Firstly, the paper introduces the research background, significance and research status at home and abroad. Secondly, the author explains the transmission way of the stock market, and analyzes the way to the stock market, which is not the same as the monetary policy which acts on the real economy. Thirdly, the author take the empirical test to study the degree of monetary policy affect the stock market return rate by using the high frequency data. The empirical results show that monetary policy does have an impact on the stock market and the effect will disappear after the opening for a period of time, and then digested this effect in the day. Finally, the author combine both theoretical and empirical analysis, and put forward policy advices of improving the effectiveness of monetary policy:adjusting the structure of monetary policy, improving the transparency of monetary policy, and improving the construction of the stock market.