The Research Of The Interrelation Between Chinese Stock Price And Macroeconomy

This paper discusses the interrelation between Chinese stock price and macroeconomic variables. By qualitative and quantitative analysis between stock markets price and macroeconomic variables that is GDP, inflation, money supply, interest rate and exchange rate, we conclude that these variables provides a benign long-run equilibrium relation with stock price, however there is a deviation interaction between stock price and macroeconomic variables during 2000 and 2003.except that we also analysis the interrelation between deposit, investment, consumption and stock price emphatically, and farther conclude those promotable interaction. In conclusion we put forward the causes of the unusual state of stock market and the policy advices of harmonizing and persisting development between stock market and macroeconomy.The content of this paper is arranged as below:The first part reviews the development of China's stock market and analyses its role in the national economy development.The second part analyses the mechanism of stock price and the question of stock quality and information.The third part analyses the correlation and the liner regression between the main macroeconomic factors and stock market from the point of view that the macroeconomic variables exert an influence on the stock market and vice versa. And also expounds the correlation of stock price and deposit, investment and consumption.The last part indicates the reasons of stock market deviation from macroeconomy and the way of harmonizing and persisting development between stock market and macroeconomy.