A Study On The Impact Of RMB Exchange Rate On The Stock Price Of China's Export Listed Companies

Foreign exchange market and stock market is the current financial market.They are indispensable two components.With the advancement of RMB exchange rate reform system,the impact of changes in RMB exchange rate on the national economy is more and more significant.However,the volatility of the exchange rate market and the lack of hedging risk instruments have made China's investors and export listed companies facing increasing foreign exchange risk.In particular,the fluctuation of RMB currency has a direct impact on the earnings of China's listed export companies.At the same time,with the development of China's capital market and the continuous growth of the number of listed companies in China,export companies stock prices are more and more reflecting their own profitability and operating conditions.With the exchange rate market-oriented reform in depth,the RMB exchange rate changes will be listed on affecting the stock price.Based on these considerations,this paper attempts to change the impact of the RMB exchange rate is growing.Based on the relationship between exchange rate and stock price theory,this paper studies the influence of RMB exchange rate on the stock price of listed companies in China by qualitative analysis and quantitative analysis.First of all,this paper systematically reviews the classical theory of the correlation between exchange rate and stock price.Secondly,on the basis of the research results of domestic and foreign researchers,this paper analyzes the intermediary factors that affect the stock price changes,including international capital,trade mark,interest rate,corporate performance and psychological expectation.Finally,,the model is used to verify the RMB exchange rate on China's export market by using ADF test,cointegration test,vector error correction model,Granger causality test.First of all,combined with the analysis of flow-oriented model and stock-oriented model we can see that the exchange rate mainly through the international capital,trade balance,interest rate,corporate performance,psychological expectations and other transmission mechanisms have an impact on the stock;Secondly,through cointegration test and error correction model can be drawn,The RMB exchange rate and the stock price of listed companies in China there is a long-term stable cointegration relationship.Second,the Granger causality test shows that exchange rate fluctuations and export of listed companies stock price relationship between each other.Finally,through the impulse response and variance decomposition,it can be concluded that the variance contribution of the stock price of listed companies in China is basically derived from itself.The significance of this study is to study the relationship between the RMB exchange rate and the stock price of China's listed companies.This can help companies through the stock price changes to understand the exchange rate changes in order to better manage their own current accounts and capital accounts,to avoid foreign exchange Risk,increase market value.At the same time,the RMB exchange rate changes and the relationship between the stock price can also help investors according to the economic environment for better allocation of capital.In addition,studying the relationship can help promote China's stock market and exchange rate market long-term stable development of the countermeasures and suggestions.