| In November 17,2014, China Securities Regulatory Commission and Hongkong Securities Regulatory Commission made a joint announcement that Shanghai-Hong Kong Stock Connect program was established. As a milestone event of history of financial revolution in China, it was a crucial point of internationalization of Chinese financial markets after financial opening policy, such as QFI, QD, etc.The paper formulates the theoretical basis of change of market liquidity in Chinese stock market by using Two-market Investment model and Market Transparency model, and makes the hypothesis that Shanghai-Hong Kong Stock Connect program has promotion effect on market efficiency of Chinese stock market, and then confirms it by selecting the representative variables and empirical method. At last the paper makes analysis of mechanism of Shanghai-Hong Kong Stock Connect program’s effect towards Chinese stock market and gives policy recommendations based on the conclusions of the paper.This paper is divided into five parts.The first part is the introduction. In this section, the paper mainly tells the background of Shanghai-Hong Kong Stock Connect program and the motivation of the writer who makes the decision to reserch this subject. The motivation is based in the theoretical and practical significance. And then, the paper introduces the literature during the research and makes a classification. In the end of this part, the paper gives the research contents, methods and innovation.In the second part, the paper describe the influence of Shanghai-Hong Kong Stock Connect program of Chinese financial markets. And compare the Shanghai-Hong Kong Stock Connect program with other open market policies based on which the paper conclude the possible problems that may be happen in the future by experience.The third part constructs a system of effect of Shanghai-Hong Kong Stock Connect program towards the efficiency of Chinese financial market by using Two-market Investment model and Market Transparency model.The forth part is empirical analysis of effect of Shanghai-Hong Kong Stock Connect program towards the efficiency of Chinese financial market. The paper selects test variable of the efficiency of Chinese financial market and makes significance testing on them.At last, the paper draws the final conclusions and proposes appropriate policy recommendations.The research findings of this paper not only evaluate the Shanghai-Hong Kong Stock Connect program but also find a theoretical frame based which it can helps to anlyse the change of efficiency of market opening process. It also provides reference to the policy makers to control the speed of the opening process, especially Shenzhen-Hong Kong Stock Connect program. |
PDF Full Text Request