Analysis Of The Linkage Between Chinese And Foreign Stock Market

Since the early 1990s,the development of Chinese stock market has gone through nearly 30 years.In the past nearly 30 years,Chinese stock market is constantly improving the laws and regulations,trading mechanism.At the same time,Chinese stock market also constantly improve the level of opening up,and strive to become part of the world's stock market.At the key point of Chinese stock market is opening up.On the one hand we can resist the conduction of international financial crisis and forecast trend of Chinese stock market by studying the impact taken by Shanghai-Hong Kong Stock Connect program to the linkage between Chinese and foreign stock market,on the other hand,we can provide some policy suggestions to the Chinese stock market by this studying.In this paper,we make the linkage between the different stock market and Shanghai-Hong Kong Stock Connect program as a starting point,through the method of theoretical analysis and Empirical Study on the different of linkage between Chinese mainland stock market and foreign stock market before and after Shanghai-Hong Kong Stock Connect program.In the part of theoretical study,this paper makes a research on the influence of the interaction between Chinese stock market and foreign stock market and the internal mechanism of the interaction between Chinese and foreign stock markets.In the part of empirical research,this paper selects the closing data of Chinese and foreign stock market,test the closing data by using Johansen cointegration test and GARCH Model Test to find out the different of linkage between Chinese mainland stock market and foreign stock market before and after Shanghai-Hong Kong Stock Connect program.The article concludes that Shanghai-Hong Kong Stock Connect program strengthens the linkage between Chinese mainland stock market and other foreign stock market.At the same time,the linkage between Chinese mainland stock market and foreign stock market will be different when we choice the different stock-index in Chinese mainland stock market.On this basis,this paper throw out some policy suggestion about laws and regulations,the opportunities and challenges brought about by the opening of the stock market,and the exchange rate policy.