The Effect Of The US Quantitative Easing On China's Shanghai Index

After the financial crises in 2008, the developed countries including the United States implement quantitative easing currency policy, in order to save the economy, improve employment rate and deflation status. The quantitative easing currency policy is a new kind of currency policy only implement when traditional currency policy fails. When implement this policy, we can stimulate the economy by buying or pledging financial asset through financial and non-financial institution. In this way, we can enhance the liquidity of the economy when the basic interest rate is zero. Since the 21 century, the central bank of the Unite State, Japan, United Kingdom and Europe have implemented the quantitative easing currency policy in succession, which has a profound influence on the recovery of the global economy. However, it has also caused too much liquidity. The quantitative easing currency policy has become the focus of the academic community, superintendent and market institution.The stock market is the crucial part of the capital market, which has been gaining the connection with the currency market during the development process. China's financial market opening degree is higher and higher, our country capital market also gradually become the target of short-term international capital hype, so the quantitative easing currency policy environment caused by the excess liquidity will impact the capital market in China, affect the volatility of the stock market. Therefore, this paper discusses the quantitative easing currency policy impact on stock market of our country, to guard against financial risks, keep the stable development of economy and the financial market in China, has a vital role.Therefore, in order to accurately study the quantitative easing monetary policy impact on China's stock market, this article elaborated based on the theory of quantitative easing regression model is established, the analysis of quantitative easing monetary policy and the correlation between the Shanghai composite index.