RMB Internationalization needs capital market opening up to provide effective mechanisms for oversea RMB backflow， which will have an important influence on domestic capital market development.

This report starts from analyzing the historical experience of major currencies internationalization， summarizes the lessons of currency internationalization influencing capital market， and discusses the possible influence of RMB internationalization on domestic development based on the current situation of China’s opening up and the typical fact that RMB internationalization still lies in the preliminary stage. We also employ the Pure-Sign-Restriction Approach based on agnosticism to do some empirical analysis.

Historical experience tells that currency internationalization and capital market development promote each other and developed financial markets are important supports to currency internationalization.

RMB internationalization is the precondition of building international financial center and realizing the financing of great powers. Financial markets， especially for capital markets， are the hinge of building international financial center. RMB internationalization will benefits asset price and has great influence on medium- and long-term asset allocation. In long with the RMB internationalization proceeding， the capacity of capital market will expand and the degree of opening up will enhance. Besides， the reform of capital market will be forced to speed up.

The total value of China stock market should further enlarges to match the needs of building up international financial center. Internal structure of capital market needs to be optimized further. The scale of corporate bond market should be enlarged to the similar scale of stock market to make up the imbalance of corporate financing. Meanwhile， low risk product should be created to optimize the market risk structure. Further more， the industrial structure in China capital market should be optimized and investment instrument should be diversified to enhance the capital market capacity of risk allocation and wealth management. Not only foreign investors should be allowed to enter domestic capital market but also authorized foreign economic operator should be allowed to list on domestic capital market in order to truly realize the internationalization of China capital market development.

Keywords：RMB Internationalization Capital Market Empirical Analysis