Research On The Cause Of A Share Index And GDP Weakly Correlation

The relationship between stock market and economic growth has long been an argumentative problem which still has no consensus nowadays. As we all know, stock market is of great significance in improving quality of economic growth and operational efficiency of listed companies. However, it’s hard to estimate impact and extent which the stock market has in economic growth with data. Theoretically, stock market is economic barometer. Share prices change in line with market to reflect trends and situations of market, which is the basic connotation of Dow Theory. Nevertheless, the economic barometer seems to be out of work in Chinese stock market. Our country’s macro-economy maintains high speed grows from beginning to end continuously, and it has enjoyed and average growth of10.5%in the past ten years. On the contrary, according to stock market changes and market trends recently, the A-share index is close to the level10years ago, which means the stock market comes back to square one. How to understand the above phenomena and how to discriminate the function of the stock "barometer" are the main points discussed in this paper.This paper is divided into four parts. Firstly, it analyzes China’s stock market established market base, and a longitudinal comparison with mature capital markets, the Britain as an example of China’s stock market will be the beginning of the establishment with a strong planned economy. Then, the paper analyzes the trend of change of the A-share index and GDP in the calender year, for comparison, noting that the status quo of China’s stock market and its problems with India and the U.S. stock market, and the use of the measurement method further test the A-share Index correlation of GDP. The following framework with the traditional stock pricing theory to explain the impact of stock market trends, long-term factor is the continued profitability of listed companies, and select the A-share market is representative of several enterprises, sustained growth through its ability to analysis and China’s stock market listed company structure, and further pointed out that is rooted in a long time, China’s stock index rose weak heavyweight stock index. Poor because of the continued profitability of the heavyweights, while A-share market, there are many good quality growth enterprises by other enterprises, but because the heavyweight occupy the A-share market share is too large, squaring to enhance the role of stock index. Therefore, saying from this meaning, our stock market is the economic barometer. In spite of the institutional defects in Chinese stock market, the promotion of the sustainable profitability of listed companies is the key to make our stock market well-developed.