Research On The Impact Of Exchange Rate Fluctuations On China’s Rubber Listed Companies

With the reform and opening, China’s economy and financial markets have been developed rapidly. At the same time, China’s rubber trade has maintained a rapid, steady growth. Foreign exchange risk exposure is one of the hot topics in the financial sector research. On the foreign exchange risk exposure of China’s rubber industry is still relatively small article, this article China’s rubber industry listed companies selected for the study, analysis of its foreign currency risk exposure. The paper has large theoretical and practical value for investment behavior and stock market investors.In the introduction section of this article first topics of the background and significance of research methods and meaning, and so do reports, and on the lack of innovation and articles may be explained. Then the research reviewed some domestic and foreign, mainly on the theory of domestic RMB equilibrium exchange rate and foreign exchange risk exposure to summarize, to lay the theoretical foundation for the empirical analysis that follows. Next, the general environment and the status of development of China’s rubber industry to analyze the characteristics of the rubber industry and export development of upstream and downstream industries are analyzed to prepare for the empirical analysis below.In the empirical part of the paper, the first comparative analysis of the static correlation between the different rubber industry companies price and volume series, while analyzing the foreign exchange market, the dollar, the euro, the Australian dollar’s movements and found that the price of rubber industry companies with foreign currency fluctuations volatility phenomenon. Then use an econometric model to analyze the foreign exchange risk exposure of rubber the size of listed companies, there is a positive correlation between the results generally, that the larger the size of the rubber between the enterprise and its business scale rubber is exposed to foreign exchange risk, possibly because it involves a greater degree of international business more more, so the larger the foreign exchange risk rubber facing enterprises. Finally, through the above analysis and conclusions, targeted policies and made some useful suggestions for the future development of China’s rubber industry.