The U.S Quantitative Easing Monetary Policy Influence Stock Empirical Analysis In China

In2008the global financial crisis since the30s of the last century the most serious crisis,the us subprime mortgage crisis directly responsible for the financial crisis, the worldeconomy was hit and therefore a recession. In response to the financial crisis, in September2008, the federal reserve announced the fourth round of quantitative easing QE4, replaceoperation twist. At the same time the fed lowered interest rates to0-0.25%of the extremelylow levels, and announced that will continue to maintain zero interest rate policy. The fedwill be directly contacted with the state of the economy and monetary policy, this is theAmerican monetary policy for the first time ever.The dollar in the international market has the important status as an international reservecurrency, the us started quantitative easing monetary policy will inevitably pose asignificant impact on the global economy, especially for the emerging economies, becausethe quantitative easing monetary policy by releasing large amounts of liquidity intoemerging economies, cause asset bubbles and inflation in these countries. At the same timeour country is the world’s largest emerging economies, release large amounts of liquidity inthe United States must make our country the best place to become the "hot money" perched,therefore our country capital market inevitably suffer from America’s quantitative easingmonetary policy to release liquidity shocks, thus causing unintended volatility of stockprice. So to explore the American monetary policy impact on China’s stock price, can havefinancial market early warning effect, can fully understand and grasp the potential risks,financial market stability and prosperity in China play a crucial role.This article first from the perspective of qualitative analysis of the United States thebackground and the reasons for the formation of quantitative easing monetary policy,operating tools, and the specific influence to the economy in our country, and through theinternational transmission mechanism, and theoretically analyze the quantitative easingmonetary policy impact on stock price in our country. To quantify the empirical andquantitative easing monetary policy impact on stock price in our country, in this paper, thequantitative easing monetary policy to our country stock price influence degree and theinfluence of the VAR model test.The empirical results show that the quantitative easing monetary policy released by a large number of liquidity in the domestic stock market through short-term international capital,China’s money supply, exchange rate, RMB interest rate channel of transmission in thestock price fluctuations in our country, to our country caused a certain extent the impact ofstock prices.Finally, aiming at the third of the fed’s recent push and QE4, this paper puts forward China’slower third, QE4, the bad impact to our country stock market prices countermeasures andSuggestions, and the U.S. monetary policy impact on stock price in our country theresearch direction was prospected.