Linkage Analysis Of RMB Internationalization And Stock Price From The Perspective Of Exchange Rate

As the internationalization of the RMB is in its initial stages,it will have a far-reaching impact on the domestic capital market,and important financial factors such as exchange rates will also change.These changes will change investor expectations and influence domestic finance.Market environment,in this case,the volatility of the stock market price will inevitably be affected.The normal fluctuation of stock prices is conducive to the rational allocation of resources and promotes the healthy development of the securities market.Unreasonable stock price fluctuations will disturb the stability of the securities market,which is detrimental to the real economy.Therefore,the promotion of the RMB internationalization strategy has provided important practical experience for domestic and foreign scholars to study how to promote the internationalization of the RMB and the reform of the stock market.Based on this,some scholars have conducted the interaction between the RMB internationalization and the exchange rate,exchange rate and stock price.Research,based on the results of previous studies,the RMB internationalization,exchange rate and stock price are placed under a unified theoretical framework to qualitatively study the linkage between RMB internationalization and stock prices.The results show that under different economic backgrounds,the results of the interaction between RMB internationalization and stock prices are different through different channels.At the same time,due to the fact that the domestic financial market is not fully liberalized and the quotas of Qualified Foreign Institutional Investors(QFII)limit make the actual operation status of the financial market inconsistent with the theoretical results,in this condition,the paper uses the Granger causality test and pulse.Responsive analysis and variance decomposition methods are used to quantitatively study the interaction between RMB internationalization and stock prices.The results show that the appreciation of the RMB in the medium and long term can help the internationalization of the RMB,the quota of Qualified Foreign Institutional Investors(QFII),and the domestic stock market.Performance has no significant effect on the internationalization of the RMB.At the same time,the internationalization of the RMB will increase the long-term appreciation of the RMB,leading to the inflow of international short-term capital and indirectly boosting the rise of the stock market.The analysis of variance decomposition results shows that in the linkage relationship among the three,The changes in the internationalization of the RMB have dominated the impact of exchange rate changes and changes in stock prices.