The Research On The Relationship Between P2P Network Lending Market And Stock Market In China

With the continuous development of China's Internet industry,P2 P Network Lending market also ushered in a development opportunity,which solved the problem of financing difficulty and high cost for small and medium-sized enterprises in China.Moreover,it provided new investment channels for investors.By issuing stocks,the stock market makes a large amount of capital flow into the stock market,and then into the enterprises that issue stocks,which helps enterprises to expand production capacity and scale.At the same time,the circulation of stocks makes small amount of capital gather together to accelerate capital accumulation.The stock market has an important impact on the macro-economy by affecting investment demand and consumption demand.Therefore,P2 P Network Lending market and stock market both have the function of investment and financing,and through theoretical analysis.It found that the two markets have the same service object.However,in the past research,scholars focused more on the single market,but little on the two markets.Aiming at these two markets,this paper explores whether there is a certain connection between P2 P Network Lending market and stock market.Besides how they will influence each other if there is a certain connection.Therefore,from the theoretical point of view,this paper first analyzes the similarities and differences between the P2 P Network Lending market and the stock market,and discusses the factors that make the two markets have relevance.Then,this paper studies the factors that affect the development of the two markets.The results show that: investor behavior,macroeconomic environment,relevant policies and regulations,interbank offered rate Shibor and so on have a significant impact on the two market returns.Finally,by selecting the relevant data of the two markets,the paper establishes a vector autoregressive model for empirical analysis.It conducts ADF stability analysis,Granger causality test,unit root test,impulse response analysis,etc.to test the stability of the data and model,and obtains the empirical results.According to the theoretical and empirical research,the conclusions are as follows: Firstly,the P2 P market and stock market in China will affected by the relevant national economic policies and regulations,investor behavior,the relationship between supply and demand of market funds,inter-bank lending rate and so on.Secondly,due to the liquidity of funds in the financial market,there is a linkage between P2 P market and stock market in terms of investment and financing.Thirdly,there is a long-term stable negative correlation between P2 P market and stock market,namely,seesaw effect.This shows that the P2 P market and the stock market studied in this paper do have relevance.We can analyze the change of another market through the change of one market.Based on the above conclusions,in addition to making recommendations for a single P2 P Network Lending market and a single stock market,combined with the relevance between the two markets.This paper also makes comprehensive recommendations from the perspective of the government and investors,which provides new ideas for the stable development of the two markets.When formulating economic policies and regulations,the relevant departments of the government can comprehensively consider the linkage between the two markets.When formulating regulatory measures for one market,they should take into account the impact on the other market,both of which should considered seeking stable development of the market.Investors should make rational judgments to avoid irrational herd behavior.In addition,integrating the two markets to establish a reasonable and effective portfolio,we should improve the portfolio yield and reduce the investment risk as much as possible,so as to protect our own investment income.