Study On The Influence Of Finanacial Crisis On Jiangsu Province Capital Market

In2008, The U.S. sub-prime debt crisis broke out, causing global stock marketvolatility, and triggering global financial crisis. With the development of economicglobalization, as an important part of the world market, China failed to possess, makethe real economy reeled, and the impact on capital market mainly on the Chinesestock market’s “Waterloo”. Because there are lots of research on real economy andfew studies on capital market, this paper studies the capital market on JiangsuProvince, analyzed the influence of financial crisis on Jiangsu Province, and proposedcountermeasures.First, the paper analyzes the process and the cause of the financial crisis, and theimpact to China. So that it let the readers understand the financial crisis frommacroscopic aspect further.In the third chapter, we use quantitative method to analyse the influence offinancial crisis on Jiangsu province’s securities business institutions, situation of listedcompanies stock financing and non-financial institutions financing structure. Theresult shows that the influence on Jiangsu province mainly on the stock market.In the fourth chapter, we research on Jiangsu province stock market. We useeconometric analysis method(like least squares estimate, ADF test and Grangercausality test，Event-study Analysis), the analysis result shows that the export-orientedenterprises like electronic equipment manufacturing industry, chemical industry andtextile industry suffered badly. While the high-technology enterprises likecommunication equipment, medical equipment and software equipment industriessuffered little. And the U.S. financial crisis is the granger reason of the stock marketof China. Through the Event-study Analysis, we got the result, as the sign for thefinancial crisis, Leman’s bankruptcy, Jiangsu capital market has significant negativeeffects, and the effect gets to maximum after a week. By the listed companyOn-the-job employees statistics, we got between the crisis, the unemployedpopulation in manufacturing industries are more than in the food processing andmedical equipment manufacturing industries. According to the analysis result, thepaper gives the corresponding policy suggestion.