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Research On The Impact Of Shortterm International Capital Flow On The Volatility Of China's Securities Market

Posted on:2020-07-29Degree:MasterType:Thesis
Country:ChinaCandidate:L J C M a n u e l L i u Full Text:PDF
GTID:2439330620459452Subject:Financial
Abstract/Summary:PDF Full Text Request
Since the reform and opening up,China's economy has continued to develop at a high speed,and the securities market has made great progress.As a "barometer" of the economic situation,the securities market not only plays an important role in improving the efficiency of market resource allocation and supporting the development of the real economy,but also plays a decisive role in China's future development strategy,such as the internationalization of the renminbi,industry.Transformation and upgrading,etc.,so the internationalization of China's securities market is the only way to develop.However,the opening of financial markets in emerging countries or regions is often accompanied by inevitable financial crises.Case studies can be found that the flow of short-term international capital is the main factor causing the volatility of financial markets in these emerging countries.Therefore,in the process of opening up the financial sector,China will also be affected by the impact of short-term international capital flows and its negative impact.In view of the extent to which the volatility of China's securities market is affected by short-term international capital flows,this paper uses the VAR model for empirical analysis.The selected indicators are: market index volatility,RMB exchange rate,domestic and international spreads,and M2.Due to the current low level of openness in China's securities market,if the impact of short-term international capital flows on the volatility of the entire A-share market is analyzed separately,then the significance is not significant.Therefore,in order to more intuitively study the current level of impact of short-term international capital on China's securities market and the current trend of marginal changes,the author divides the Chinese securities market into four different levels,layer by layer,under different channels,short-term The extent to which international capital flows affect the volatility of China's securities market.Through empirical analysis,this paper finds that short-term international capital has begun to have an impact on the volatility of China's securities market,and its influence capacity has gradually weakened from the bottom up,and the more segmented the market influence is stronger.And with the continuous liberalization of China's securities market,in the long run,the impact of short-term international capital on the volatility of China's securities market is increasingly certain.The continued opening of the financial sector since 2018 has brought significant marginal changes to the volatility of China's securities market.The follow-up of the Chinese government will continue to broaden the channels for foreign investment in China,so the impact on the volatility of the entire Chinese A-share market will increase.The stronger the situation,the Chinese government should summarize the experience and lessons of the financial crisis in the opening of financial markets in emerging countries in history,and focus on controlling the impact of short-term international capital flows on the volatility of the securities market and improving the policy supervision system.
Keywords/Search Tags:securities market opening, short-term international capital flows, financial risk control, policy supervision
PDF Full Text Request
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