Abstract This paper constructs a general equilibrium theory model covering capital account liberalization, bond market, stock market and foreign exchange market, and then empirically tests the time-varying effects of capital account liberalization on those financial markets in China by using SV-TVP-VAR model. The study finds the following conclusions. Firstly, with the gradual advancement of financial market system reform, the impact of capital account liberalization on China’s financial markets is deepening, among which that on foreign exchange market is the strongest, followed by that on bond market and then that on stock market. Secondly, in the short term, the liberalization of capital account is conducive to the development of domestic financial markets, but a negative one in the long run. Thirdly, compared with the overall liberalization of capital accounts, that of short-term capital accounts has a weaker yet volatile impact on China’s financial markets since China has been cautious in the management of short-term capital flows.
DAI Shu-geng,YU Bo. Research on the Time-varying Influence of Capital Account Liberalization on China’s Financial Market. Economic Survey, 2019, 36(4): 063.
2019, Vol. 36 
