The Affecting Factors Of Stock Price Based On Principal Component Analysis

China’s stock market has made some achievements since the1990’s.So far,more than2000companies have got into the shanghai and Shenzhen Stock Exchange, forming a certain scale. However, because China’s stock market is not mature, there are still a lot of problems to be further studied, compared with stock market in the developed. Therefore, this paper mainly study the influencing factors of stock market prices, in the basis of stock market. Firstly, the paper introduce theoretical research on stock prices, which are put forward by scholars at home and domestic. Secondly, the article theory view is proposed on this basis.The influencing factors are sorted by macroeconomic factors, industry factors and micro factors. The macroscopic factors include political factors, money supply, inflation and exchange rate level, Industry factors including economic cycle and industry life cycle, The microcosmic factors include the company profit ability, debt paying ability, development ability and operation ability. This paper, using the method of quantitative analysis, collected more than2000listing Corporation stock data of the shanghai and Shenzhen Stock Exchange in2012. Take the stock price as the dependent variable, take the growth rate of total assets, asset turnover ratio, liquidity ratio, earnings per share and debt ratio as variable.The data are analyzed by principal component analysis and linear regression analysis, and verify the point of view of this article through the analysis of results.