An Empirical Study Of The Effect Of Exchange Rate On The Fluctuation Of China's Stock Market

As an important economic variable,with the continuous reform of the exchange rate system and the internationalization of RMB in recent years,the influence of the RMB exchange rate on China's stock market has also been increasing.Based on the introduction and analysis of the theoretical mechanism of the impact of RMB exchange rate on stock market volatility,this paper makes an empirical analysis using Stata software under the premise of distinguishing the stock price fluctuation from the stock market volatility.Through a series of regression modeling analysis,this dissertation draws the conclusion that "the stock market fluctuates gently when the RMB depreciates,and the stock market fluctuates violently when the RMB appreciates." This provides a risk-averse investor with a reference that risk averse people dislike volatility in the stock market at unrelated prices.The results of this study have some reference value to securities practitioners,capital market researchers and corporate decision-making departments.