Research On The Influence Of Capital Market Opening On Stock Market Liquidity

The 19 th CPC national congress proposed to promote the formation of a new pattern of comprehensive opening up.With the continuous improvement of economic globalization and China's opening to the outside world,the pace of capital market opening to the outside world is accelerating.Since the opening of "Shanghai-Hong kong stock connect",China's capital market has made remarkable progress in opening up to the outside world.Based on the experience of the "Shanghai-Hong kong stock connect" model,the "Shenzhen-Hong kong stock connect" was officially launched at the end of 2016.Since2018,China's capital market has been opening up A series of policies,including "bond connect","a-share access to moldova" and the upcoming "Shanghai-London connect".In order to better open up the capital market to the outside world,the people's bank of China and the state administration of foreign exchange have also issued a series of measures to expand the opening up,including adjusting the current QFII and RQFII related foreign exchange,and removing restrictions on the proportion of funds to be remitted.Expanding the degree of capital market opening is based on the strategic demand of China's development needs.The opening up of the capital market has promoted international capital investment,accelerated the integration with the international capital market,deepened the exchanges between the two capital markets,and promoted the mutual integration and interoperability between the two capital markets.Accurately evaluating the impact of capital market opening on China's stock market is a necessary step to explore the policy of capital market opening,a necessary measure to prevent the risk of crisis caused by capital market opening,and a necessary prerequisite to promote the continuous maturity and perfection of China's securities market.For this reason,this article is based on Hsiao(2012)put forward policy effect evaluation model based on panel data and Forni&Reichlin factor model(1998),based on the perspective of changes in market liquidity,"Shenzhen-Hong kong stock connect" as the research object,respectively from the overall effect and the influence of the plate market effect two aspects,the assessment via "Shenzhen-Hong kong stock connect“ impact on Shenzhen A-share market liquidity.Firstly,turnover rate as A measure of liquidity index,via" Shenzhen-Hong kong stock connect“ underlying shares as experimental group,others stock as control group,as the experimental group and control group with the ShenzhenA-shares of the stock market and macroeconomic regulation control by the same,so you can use factor model to predict "Shenzhen-Hkong stock connect" counterfactual effect,and then compared with the real level of liquidity,estimate the policy effect.Secondly,shenzhen A-share market is divided into main board,small and medium-sized board and growth enterprise board.The above models were respectively used to analyze the market of each sector,and the difference in the policy influence on the market liquidity of each sector was compared horizontally.Finally,in view of the degree of difference in the influence of market liquidity among different sectors,the reasons for the difference are analyzed in depth from the internal structure of different sectors of the market,and Suggestions and countermeasures are proposed in terms of risk prevention,mechanism improvement,innovation and other aspects under the environment of increasing openness of the capital market.The conclusion shows that the put into effect of the "Shenzhen-Hong kong stock connect" has promoted the liquidity of Shenzhen A-share market,which partly reflects that the opening of the capital market has a positive effect on the liquidity of the stock market.Among them,the liquidity of the main board market decreased,the liquidity of the small and medium-sized board market increased on average,and the liquidity of the growth enterprise market increased,which reflects the different impact of the opening of the capital market on the market of each sector.The reason is the difference in the internal structure of the market of each sector.