Analysis Of The Linkage Between Shenzhen And Hong Kong Stock Markets Before And After The Opening Of Shenzhen-Hong Kong Stock Connect

With the continuous improvement of economic development,the linkage between different markets is also increasing,and there is a certain mutual influence,and the degree of linkage depends on factors such as financial investment,trade interoperability and investor correlation.Since the beginning of reform and opening up,Shenzhen and Hong Kong have become increasingly close,not only geographically close,but also in terms of investment,trade,capital,and talents.The linkage between Shenzhen and Hong Kong stock markets has also increased,especially in Shenzhen-Hong Kong Stock Connect.After the opening,the linkage between the two markets has received wider attention.This paper takes the Shenzhen-Hong Kong stock market linkage before and after the opening of Shenzhen-Hong Kong Stock Connect as the research object.From the definition of stock market linkage and the cause of stock market linkage,this paper analyzes the influencing factors of stock market linkage,from economic factors,AH stock listed companies,investment.The linkages between Shenzhen and Hong Kong stock market were analyzed from the perspective of relevance,policy system arrangement,etc.The Shenzhen Stock Exchange Index and the Hong Kong Hang Seng Index were selected as variable indicators,and the specific data of the two years before and after the opening of Shenzhen-Hong Kong Stock Connect were obtained.Then we have analyzed the stability of the sequence and the correlation between the indicators.The VAR model was constructed by using the impulse response analysis and variance analysis between the two cities to specifically investigate the linkage characteristics of the two cities,and compare the linkage characteristics of the two cities before and after the opening of Shenzhen-Hong Kong Stock Connect.Finally,on the basis of theoretical analysis and empirical analysis,relevant countermeasures and suggestions are put forward.On the management side,the regulation of capital flow is well done,the financial system and the securities market system are further improved,and the supervision of the securities market is strengthened.The reference role of the relationship between the two cities,fully pay attention to the impact of various influencing factors on the relationship between the two cities,do a good job in the management of cross-market asset allocation,and prevent the risks brought about by the changes in the linkage characteristics of the two cities.