Abstract
The development of stock market in China is immature compared to other stocks markets and vulnerable to the impact of international environment. This paper analyzes how the global financial risk affect the development of Chinese stock market in terms of global risk transmission. The goal is to offer policy suggestions about how to avert external risks and stock price fluctuations. Given the VIX index, an ordinary least squares model is created to examine which degree of variation the increase in VIX index brings to SSE Composite Index. The result of regression analysis indicates that one percentage change of VIX index generate a reduction of approximately 13 points in SSE Composite Index. In response to an increase in the level of global financial risk, the stock price of Chinese stock market appears to decrease and the stock market is more likely to experience depressions.
Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
