The globalization of China stock market

Abstract

China stock market is a important component of world capital market, whose globalization can optimize the economic structure. This thesis provides an outlook about the improvement of china stock market globalization. I pick the most representative market liberalization schemes including the Stock Connect Program, QDII and QFII. I use quantitative method by conducting regression analysis and sample difference in mean test. The result shows the mature markets have significant impact on China stock index. The northbound total net buy/sell in Stock Connect is an indicator of the index return. QFII investment confidence and volume affect the market performance. The qualitative method is used to for explanation of QDII. As the domestic funds investing offshore, QDII has the potential to benefit from the portfolio diversity while face the foreign financial rise. The lack of offshore investment experience also contributes to the poor performance.