Proceedings of the 2018 International Symposium on Social Science and Management Innovation (SSMI 2018)

Empirical Analysis of the Relationship between Monetary Policy and Stock Price in China

Authors
Shikun Zhang
Corresponding Author
Shikun Zhang
Available Online February 2019.
DOI
10.2991/ssmi-18.2019.75How to use a DOI?
Keywords
monetary policy, market index, money supply price, fluctuation of interest rate.
Abstract

this paper USES VAR model to analyze the influence of monetary policy on stock market index from 2001 to 2014.The results show that there are significant influence channels between monetary policy and stock market index, and the central bank can influence the stock market through monetary policy (such as deposit rate, inter-bank lending rate, etc.).Specifically, the change of interest rate has a significant negative correlation with the stock market index, that is, when the interest rate rises, the stock price index will fall. But the money supply channel is not obvious. Rationalizing the relationship between monetary policy and the stock market will help the country indirectly influence economic development through the stock market wealth effect.

Copyright
© 2019, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 2018 International Symposium on Social Science and Management Innovation (SSMI 2018)
Series
Advances in Economics, Business and Management Research
Publication Date
February 2019
ISBN
978-94-6252-667-9
ISSN
2352-5428
DOI
10.2991/ssmi-18.2019.75How to use a DOI?
Copyright
© 2019, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - Shikun Zhang
PY  - 2019/02
DA  - 2019/02
TI  - Empirical Analysis of the Relationship between Monetary Policy and Stock Price in China
BT  - Proceedings of the 2018 International Symposium on Social Science and Management Innovation (SSMI 2018)
PB  - Atlantis Press
SP  - 449
EP  - 454
SN  - 2352-5428
UR  - https://doi.org/10.2991/ssmi-18.2019.75
DO  - 10.2991/ssmi-18.2019.75
ID  - Zhang2019/02
ER  -