Graduation Year


Date of Submission


Document Type

Campus Only Senior Thesis

Degree Name

Bachelor of Arts



Reader 1

Richard Burdekin

Rights Information

© 2020 Zhaoyu Zhang


In recent years, China has tried to open up its financial markets through various measures. For the QFII scheme, the quota limit is being gradually relaxed from $4 billion to no cap. Do quota changes have an impact on the stock market? In this paper, the empirical analysis shows that quota changes do not have an impact on the Chinese financial market per se, but do have an impact when used in conjunction with other variables. For example, when used in conjunction with quota changes, interbank lending rates have a reduced impact on the market and the AH premium is less sensitive. Also, in analyzing the relationship with the S&P 500, I found that the Chinese stock market returns are not that correlated.

This thesis is restricted to the Claremont Colleges current faculty, students, and staff.