Comparative Study on the Monetary Policy's Regulation and Control Effect on the Stock Market in China before and after Non-tradable Shares Reform

摘要

This paper uses Co-integration Theory and Error Correction Model to study the monetary policy's regulation and control effect on the stock market in China. Relative data is divided into two periods, before non-tradable shares reform (January, 2002~December, 2005) and after non-tradable shares reform (January, 2006～December, 2009). The results show that: the monetary policy much influences China's stock market before non-tradable shares reform; The regulation and control effect of monetary policy has been regulated so much more obviously on the stock market from non-equilibrium states to long-term equilibrium states after non-tradable shares reform. The stock market has been affected by the monetary policies for a shorter time after non-tradable shares reform.