The Impact Of Shenzhen-Hong Kong Communications On The Linkage Between Shenzhen And Hong Kong

China's stock market has undergone high-speed development and transformation for nearly three decades since its establishment in 1990.Under the background of economic globalization and opening to the outside world,our country gradually introduced a series of policy and system,including,delisting system reform of non-tradable shares,B shares open,QFII system,QDII system,"Shanghai tong" and "deep via Hong Kong".Along with our country opening to the outside world degree unceasing enhancement,the stock market in mainland China and other overseas stock market correlation between increased,especially the correlation with the Hong Kong stock market is increasingly significant.Hong Kong as an international financial center and the important trade window in mainland China,with the mainland's economic cooperation in trade and financial services more and more closely,the opening to the outside world and development of mainland capital market plays a certain guidance function.On December 5,2016,"hong tong" as the QFII,cross-border yuan trade settlement,"Shanghai tong",etc.After the reform,and a cross-border securities investment pilot project for the official opening,opens the deep port and connectivity of the Hong Kong stock market mechanism,to further advance the degree of opening to the outside of the capital market in China.This paper,based on the opening of shen zhen-hong kong stock connect,has conducted a series of theoretical research and empirical analysis on the influence of shen zhen-hong kong stock exchange on the interactivity of stock market in Shanghai and shen zhen.Firstly,review and summarize the researchers of the existing research results at home and abroad,the paper summarizes the theoretical foundation of the stock market linkages,analyzes the connotation and the cause of the stock market linkages,expounds the related theory of stock market correlation;Secondly,it makes a general analysis on the joint activity of Shanghai and shen zhen.Thirdly,the application of correlation coefficient test,stationarity test,cointegration,granger causality test,impulse response function and variance decomposition method,the "hong tong" opened two stages before and after the two cities of shen zhen and Hong Kong correlation has carried on the empirical analysis;Finally,according to the research results,the corresponding countermeasures and Suggestions are put forward.The study found that there was no long-term co-integration relationship between shen zhen and Hong Kong before the opening of the shen zhen-hong kong stock connect.After the opening of the shanghai-hong kong stock connect,there is a long-term co-integration relationship between the two cities.The Hong Kong market is the granger cause of the shenzhen market volatility,but the Hong Kong market is largely unaffected by the shen zhen market.Respectively according to the results of the mainland and Hong Kong capital market put forward the corresponding policy recommendations,two financial regulators should further strengthen the cooperation in the financial sector,and at the same time do a good job in risk prevention.The mainland should also adhere to financial reform and innovation,accelerate the opening up of China's capital market and the process of internationalization,and urge China's stock market to become overly mature as soon as possible.For investors,rational treatment of the investment opportunities brought by the "shen zhen-hong kong stock connect" can effectively prevent risks and gain the benefits of the two markets.