The Management Research Of International Arbitrage Capital Inflows In China

Along with the strengthening of international capital flows and the rapid economic development of our country, large international arbitrage capital is being attracted into our country market, causing sharp fluctuations of the price in the real estate market and the stock market in China, so that from the perspective of asset prices to study the management of the international arbitrage capital flows becomes a reality.After define the asset prices and the international arbitrage capital inflow, this paper first expounded the management of international arbitrage capital flows and asset prices related theory, at the same time analyzes the influence of international capital flows into asset prices channels and mechanism. Then empirical analysis the relationship of international arbitrage capital flows and the prices of the real estate prices and the stock with the VAR model. It shows that the real estate price and that stock prices is mostly affected by its own fluctuations. The impulse response of both prices to international arbitrage capital inflows in60months seems different. The sensitivity of real estate prices and the stock price to international capital flows that Lag a period are different. We can see that the contribution of international arbitrage capital inflows to both variances is gradually strengthened from the results of variance decomposition.After that the paper expounds the management status of arbitrage capital from the view of sterilisation intervention and the capital control and gets inspiration from the international practices. At last, from the perspective of suppressing the asset prices, it puts forward the proposal of the management of international arbitrage capital inflows. It mainly involves the innovation of tools, the flexibility of the exchange rate reform, strengthening the use of quantitative tools and early warning system consummation.