Research On The Trend And Influence Factor Of Financial Market Equilibrium Based On The Internet Financial Innovation

As one of the greatest inventions of human beings in the twentieth Century,the Internet is gradually affecting and changing the living environment of human beings.In the economic field,the Internet is integrated with traditional finance,and infiltrated the spirit of"sharing,equality and openness" into the traditional financial field from the ideological level.So,the research of Internet finance is of great importance.The essence of Internet finance is financial innovation,which injects new vitality into the financial market,but financial innovation will impact the original financial market and affect the market yield and risk.As a new product of the financial integration with the Internet,with the network technology and financial risks,internet financial has high risk fluctuation.Once the systematic risk occurs,it will have an important impact on the financial market of our country.Thus,the research on Internet finance is necessary.The subject of this research is Internet finance.Firstly,by reading literature,the paper defines the main concepts of this study,summarizes the domestic and foreign scholars ' research on financial innovation and financial market research,internet financial model and innovation,financial risk and policy,and determines the example of Yuebao to explore the trend and influence factor of financial market equilibrium based on the internet financial innovation.Then,starting from the financial market equilibrium theory,the paper does the theoretical analysis about market equilibrium and volatility transmission before and after the appearance of internet financial innovation.The paper explores the equilibrium theory,the equilibrium condition,the equilibrium interest rate and market volatility,and proposes six hypotheses after the internet financial innovation appearance.Later,the paper uses empirical analysis to examine the theoretical hypothesis,builds the regression model to explore the influence of rate of return on the money market,the bond market and the stock market after the internet financial innovation,and builds the GARCH model to explore the transmission mechanism of market volatility.The paper collects the diurnal data of Tianhong Yuebao money market fund(000198),Shanghai Interbank Offered Rate(Shibor),the yield of the maturity of China's treasury bonds(10 years)and Shanghai and Shenzhen 300 index closing price to do the empirical analysis and verify the six hypotheses of the theoretical analysis.Finally,according to the results of theoretical analysis and empirical analysis,the paper summarizes the conclusions of this study,proposes the relevant suggestions,and imagines future research prospects.In summary,this paper summarizes the Internet financial main concept and the research results of and the domestic and foreign scholars,theoretical analyses the financial market equilibrium and volatility transmission before and after internet financial innovation,empirical analyses the actual data to verify the theoretical hypothesis and gives the suggestions according to the results of the paper.