The Research Of Relationship Between International Oil And The China’s Stock Market

China’s economy has maintained a steady growth rate with increasing demands for energy year by year.However,China’s energy resources are relatively limited.In particular,oil resources are heavily imported over the years,leading to a gradual increase in the dependence on foreign oil.In recent years,the continuous fluctuation of crude oil prices has an important impact on China and the global economy.For the enterprises,Crude oil prices will help reduce costs and expand production,thereby promoting economic development;and rising crude oil prices will affect the production of enterprises,which is not conducive to economic recovery.Based on this background,the dissertation proposes to study the correlation between international crude oil price and China’s stock market through Realized GARCH model and Copula model.Brent crude oil futures price is taken as the representative index of international crude oil price,CSI 300 Index is taken as the representative index of Chinese stock market,which has some reference to the healthy operation of China’s economy and stock markets and the prevention of market risks.The study confirmed that the Brent crude oil futures prices and the CSI 300 Index does have a correlation relationship,and the trend of change is basically the same.Different from the previous studies,the rise of crude oil prices will not lead to the decline in China’s stock market.On the contrary,the study found that there is a positive correlation between the two.In addition,in extreme circumstances,when the crude oil prices have skyrocketed or plunged,the CSI 300 Index will also have a substantial increase or decrease with a high probability.In the future development,from a macro perspective,our government should strengthen its energy reserves,develop new energy sources,optimize the stock market structure and prevent financial risks.At the micro level,investors should enhance the initiative to learn awareness and ability.For policymakers and regulators,the role of the market economy should be brought into full play so that the stock price is in line with its intrinsic value.For energy-related industry researchers,research in the energy and non-energy industries should be added and the lagged and asymmetrical effects of crude oil prices on the stock market should be studied.