The Research Of Cyclic Investment Strategies In China's Stock Market

Since 1990, China's stock market has developed rapidly, financial assets in the asset structure of residents continued to increase. More and more companies and investors crash into this market, which has an important situation in China's capital market. The stock market is generally considered as the economy "weatherglass" of a country's economic. Many researchers analyst the relationship between the development of financial market and the growth of economic, finding that they have different relationships which due to the models and the data. They research it from the theoretical relationship to the establishment of various models. they study it from different times between the growth of financial markets and economic relevance. But they found the two run in cycle.Firstly, this article reviews the theory of the development process about the stock market cycle and economic cycle, and then it introduces the origin respectively, the characteristics, and the present situation of the two cycles. The indicators of economic and financial indictors have some impact on the economic and the stock market. These economic and financial indictors include inflation rate, interest rate, deposit reserve rate and so on. We analyst the relationship between these indicators and the stock market, find which one has the most influence on the stock price. In the third, this paper adopts the economic data after 1997 quarter to study the relationship between the two cycles. In developed countries, the two cycles are basically on the same operating conditions, because they have mature market. At last the article summarizes briefly the relationship between the stock price and several indicators. And also make appropriate policy and give operational proposals for the managers and the investors.