Abstract
This paper compares the stock markets of China and the United States from several aspects, such as the first class IPO market mechanism, secondary security market mechanism, and the market supervision mechanism. Overall, China’s stock market lags behind the United States stock market. Then, this paper expounds the transmission channel of stock market linkage and the related theory of stock market linkage. Through the trade between countries, the economic spillover effect, the gradual increase of transnational listing, and the globalization of stock companies, the paper explores the related ways of Chinese and American stock markets from four aspects, and tries to analyze the formation mechanism of the linkage between China and America stock markets in four channels: International trade, financial capital, policy and expectation. Finally, a conclusion is drawn: With the development of China’s economy and opening of the stock market system, the stock market linkage between China and the United States is increasing gradually.
Highlights
With the process of economic globalization, China’s capital market has gradually opened to the outside world, and the domestic and foreign economic ties have gradually increased
The linkage between the stock market refers to the stock market between different countries which have a common trend, and there is a strong correlation between different market yields and price fluctuations, which makes the different stock market prices to achieve long-term stable trend
In the 1987, when the stock market crashed in the United States caused a global stock market decline, scholars began to pay attention to the mutual influence of the capital markets between countries [1]
Summary
With the process of economic globalization, China’s capital market has gradually opened to the outside world, and the domestic and foreign economic ties have gradually increased. With the increase of global economic integration and the increase of international capital flow, the phenomenon of rising and falling of international stock market is becoming more and more obvious. The phenomenon of stock market linkage has become a very important economic phenomenon in the international securities market. It is the result of domestic financial. The study of the linkage between the stock market index at home and abroad reflects the degree of internationalization of China’s securities market, and it is beneficial for the government to supervise the market and guard against financial risks
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