Empirical Analysis of Factors Influencing China´s Stock Market

Stock market is an important segment of the financial system of a country. This paper empirically studies the relationship between China´s stock market after the equity division reform and macroeconomic factors in the background of international financial market integration, using methodology of VAR to incorporate the influence of the international stock market into the model, together with the impulse response functions analysis and variance decomposition analysis. The result demonstrates that China´s stock market volatility is influenced by domestic macroeconomic factors to a greater extent, the influence of the comovement effect of international stock markets is still limited.