Correlation Analysis Of Stock Index Futures Market Between China And Korea

For a long time,the financial derivatives market has always been the dominant factor in Western developed countries.However,in recent years,the Asian financial derivatives market has also begun to emerge.In 1996,South Korea introduced the first stock index futures contract—KOSPI 200 stock index futures.Since its launch,it has grown rapidly and its trading volume has once ranked first in the world's stock index futures trading volume.On April 16,2010,China also launched the first stock index futures contract—the CSI 300 stock index futures.Since its launch,the relationship between the domestic stock index futures market and the spot price also the price transmission mechanism of the inter-country stock index futures market have been closely watched by investors.The stock index futures mainly have the functions of price discovery and risk avoidance,and they are also highly leveraged.By learning from the experience of the mature stock index futures market,we can point out the way for China to develop our own stock index futures market much better than before.Therefore,in the selection of research objects,this paper is different from the previous studies that most selected the highly mature securities markets such as the United States and Germany,but focused on the emerging securities market in the Asian market,the Korean market.Since the launch of the Korean stock index futures,it has been widely invested.They are welcomed by the investors and have a good market liquidity.They have indelible credit for promoting the development of the Korean securities market.In addition,Korea and China have similarities in investor structure,culture,development of economic and so on.So,using the data from the Korean stock index futures market to study which is of great significance for reference to help China develop its stock index futures market.The framework of this paper is as follows:Chapter One Introduction.It mainly introduces the background and significance of the topic selection,as well as the content of this paper and the methods.Chapter Two Literature Review.Firstly,the foreign scholars' research on the mutual influence of the stock index futures market between countries,and the domestic scholars' related research on this issue,and finally summarized the relevant document of this issue as well as the shortcomings of this issue.Chapter Three From A Macro Perspective To Analyze The Similarities and Differences Between The Two Countries.First of all,the history of stock index futures in South Korea and China was separately introduced.Then,introduce the sinilarities between China and SouthKorea's stock index futures markets.Finally,the differences between China and South Korea's stock index futures markets mainly include the following aspects: differences in investor structure,differences in the supervision of market,and differences in the services of the investment market.Chapter Four Empirical Analysis.Using different kinds of models to operate the correlation analysis which were conducted on the logarithmic rate of return of China-Korea stock index futures.Chapter Five Summary and Related Policy Recommendations.On the basis of empirical analysis,combined with the advantages of the experience of the Korean futures market,it proposes to use these policy recommendations for China to better develop the stock index futures market.