Abstract:
China has issued many policies to implement financial liberalization such as deregulation in the bank sector, refinements in financial markets, and allowing more freedom for Chinese and foreign investors to participate and interact domestically and overseas (Lee 2012). The purpose of these policies is to connect Chinese financial market with global markets closely. Here, we study the impact of the monetary policy issued by the People’s Bank of China in Nov. 2016 for allowing global investors to access the Chinese stock markets directly.
