The Dynamic Interrelation Among Rmb On-shore And Off-shore Markets: Based On The Foundation Of Shanghai

With the integration of the global economy,the exchange rate plays a great role in the international economic governance,which not only affects the commodity trade,also promotes the international capital flow more effectively.In recent years,China is committed to promoting the internationalization of the RMB and capital opening,in order to integrate with the world,to build the foundation of a big country,and furthermore to create a good financial basis for the adjustment of China's industrial structure.The RMB exchange rate adjusts itself based on the market referring to a basket of currencies,and no longer pegs to U.S dollar solely.After the reform of the RMB exchange rate mechanism.to a certain extent,respecting the supply and demand of the market.Hongkong RMB offshore market,the Shanghai Free Trade Zone,Shanghai and Shanghai Tong have been established,highlighting the Chinese actively promote financial reform,and strive to conform with international determination.However,China's financial market is a relatively closed market,the RMB exchange rate by the government management is relatively high,so the interest rate parity in the RMB forward exchange rate is not completely performance,the onshore RMB forward exchange rate,offshore DNF market exchange rate(CNH),mutual independent and interrelated,financial market opening will also cause China to face the impact of international capital,the RMB exchange rate has a huge impact,but also will affect the RMB forward pricing.The purpose of this paper is to study the impact of capital opening on the RMB exchange rate.The establishment of Shanghai and Shanghai is a sign of China's opening up,so this paper choose to study the impact of capital openness on the RMB exchange rate through the comparison of the changes in the relationship between RMB On-shore and Off-shore Markets foundation of Shanghai-Hong Kong Stock Connect program.This article first to the forward exchange rate pricing theory,and then summarize previous research results,at last establish the first 202 trading days the market price before Shanghai-Hong Kong Stock Connect program,249 trading days after Shanghai-Hong Kong Stock Connect program(excluding the holidays)the market price,build VAR model co integration test,and then carry out qualitative analysis Grainger causality test.Found after Shanghai-Hong Kong Stock Connect program the impact of SPOT on the overseas market has weakened,but the impact of overseas markets on the SPOT has been strengthened,Hong Kong offshore market CNH and other market correlation is significantly strengthened,becoming the information center of the RMB exchange market.