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China’s Stock Price And The Macro-economy

Posted on:2014-05-21Degree:MasterType:Thesis
Country:ChinaCandidate:S Q ZhaoFull Text:PDF
GTID:2269330422953707Subject:Financial
Abstract/Summary:PDF Full Text Request
At present, stock market plays more and more import role in the development offinancial markets, The relationship between stock market and economic growth is oneof the hot topics which people concern. Stock market is often quoted as theweatherglass of National economy in developed countries, the weatherglass meansthat the development of stock markets will have a certain impact on The Nationaleconomy, but it is a disputed question stock market can be regarded as theweatherglass in our emerging market country.This paper is about the research of China’s stock market prices and the macroeconomicimpact, at first, on the basis of previous studies, this paper expounds the influence of fluctuation sbetween the macro economic with stock market price. We select three macroeconomic variables,to analysis the relationship between them. the three macroeconomic variables are inflation rate、real output and monetary policy. By analysis, Chinese money supply shocks on the Shanghaiindex changes at an annual rate of the biggest influence, the impact of the consumer price index isthe second smallest, and industrial sector of minimum impact. According to China’smacroeconomic situation, our state’s monetary policy influences the stock market then theinfluences will disturb investors plan of investment, then the development of the macro economyis affected by it. The Shanghai index has the greatest influence on the money supply than anannual rate of year-on-year growth rate changes and value added of industry changes. So theinfluence of the development of the stock market needs the support of capital, the stock marketturnover, in-outflow of money reflect money supply in the current simply, therefore, thedevelopment of the Chinese stock market is affecting macroeconomic adjustment.This study aims to built correct understanding between fluctuation of the stock prices withmacroeconomic, and help the economic departments of government provide reference opinions.
Keywords/Search Tags:Stock Price, Macroeconomics, SVAR Model
PDF Full Text Request
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