Study on the Correlation between Stock Market and Macro Economy in China

DOI

10.2991/essaeme-15.2015.58How to use a DOI?

Keywords

Stock market, Macroeconomics; Empirical test.

Abstract

In order to characterize the correlation between stock market and the macro-economy in China, the study used 20 years data from 1995 to 2014 to analyze, by means of Johansen cointegration method and Granger causality test to verify whether there is departure between China's stock market and economic growth. Test results show that: in general, China's stock market is positively correlated with the level of economic growth, but the stock market's function is still its most basic financing function in a market economy. Only by continuing to strengthen supervision on listed companies, improving the quality of listed companies, increasing market supervision and cracking down on illegal market discipline violations, can it make the stock market play its resource allocation function. With the continuous growth and system gradual improvement of China's stock market, it will play a more and more far-reaching effect in China's economic growth.

Copyright

© 2015, 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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TY  - CONF
AU  - Shengjun Li
AU  - Xiumin Zhao
PY  - 2015/10
DA  - 2015/10
TI  - Study on the Correlation between Stock Market and Macro Economy in China
BT  - Proceedings of the 2015 International Conference on Economics, Social Science, Arts, Education and Management Engineering
PB  - Atlantis Press
SP  - 259
EP  - 262
SN  - 2352-5398
UR  - https://doi.org/10.2991/essaeme-15.2015.58
DO  - 10.2991/essaeme-15.2015.58
ID  - Li2015/10
ER  -