How responsive is China's stock market to the monetary polices

Chen, XinKai; Xie, Dejun

2016

2078-0958

International Multiconference of Engineers and Computer Scientists 2016, IMECS 2016

2

788-793

Tsimshatsui, Kowloon, Hong kong

Newswood Limited

The development of China deeply associate with the supports for dfferent industries from China Government, since the beginning to the middle of 2015, Central Bank of China has implement three reductions of deposit and loan interest rate and three reductions of deposit reserve rate of financial institution. These monetary policies which increase the liquidity of cash flows in the market certainly will bring positive stimulation to Chinese stock market. This study bases on these monetary policies mentioned above, utilizes Event Study Methodology and studies the response efficiency of Chinese stock market to those monetary policies issued by Central Bank. From the outcomes of the models, we find that there are varying degrees of feedback of Shanghai and Shenzhen Stock Market when the policies were enacted, and the impacts of every stimulation starts to fade out in the third trading days after the enaclion dates of each monetary policy.

第一

EI

20163002632778

Commerce ; Deposits ; Efficiency ; Public policy

Production Engineering:913.1 ; Social Sciences:971

EV Compendex

South University of Science and Technology of China, China

Chen, XinKai,Xie, Dejun. How responsive is China's stock market to the monetary polices[C]:Newswood Limited,2016:788-793.