An Empirical Study On The Stock Price Transmission Mechanism Of China's Monetary Policy

In recent years,China's economy has developed rapidly,the stock market also become stronger than before.The stock market is a very important investment and financing channel for China,and its impact on the substantial economy is also increasing.The substantial economy is an important pillar of the national economy,and it is the foundation for the subsistence and development of human society.So,more and more scholars start to research the impact of the conduction mechanism of monetary policy on the stock price.Monetary policy mainly acts on the stock market by means of supply of money and interest rate,and the stock market will act as a medium to transfer the influence to the substantial economy.This paper mainly analyzes how the capital market conducts monetary policy through the stock price and whether it will play a role in the substantial economy.We can find the problems of the stock market and examine whether the conduction mechanism of monetary policy is unobstructed.The research on the conduction mechanism of monetary policy complies with the trend of global economic development,and it also can achieve the purpose of developing economy and stabilizing finance.In the study of monetary policy's stock price transmission process,the influence of monetary policy on stock price is the first part of this paper.The influence of stock price on substantial economy is the second part of this paper.What can be used to represent the substantial economic indicators are the social consumable total retail sales and the total investment of fixed assets.This paper is deeply researched the interaction effect of the monetary policy,the stock market and the substantial economy.The conclusion does not achieve the anticipated results,and then this paper offers some practical proposal according to China' actual conditions.