The Impact Of RMB Exchange Rate Changes On China’s Stock Market

Exchange rate and stock price can reflect the development of a country’s economy,especially in the process of global integration background,gradually promote the popularity of the floating exchange rate system.Therefore,the mutual influence between exchange rate and stock market has become an increasingly important research area.This paper reviews the domestic and foreign theories about exchange rate impact on the stock market,according to the theoretical basis of the new exchange rate reform of RMB exchange rate impact on the A stock market;Choose the dollar exchange rate and the Shanghai Composite Index,the data range of August 11,2015 to August 11,2016;ARCH model,Granger Granger causality test,multiple regression analysis,impulse response analysis and other empirical econometric methods of RMB exchange rate changes to the conduction mechanism of A stock market influence.From the aspect of the theory,this article analyzes the reason of the RMB exchange rate formation mechanism and prevention of financial risk transfer across the market;from the practical point of view,is conducive to the management of listed companies by the expected exchange rate changes to adjust the company’s strategy should be to reduce the company’s exchange rate risk by hedging tools.