The Impact of RMB Exchange Rate and Stock Price on Short-term Capital Flow

DOI

10.2991/ssmi-18.2019.11How to use a DOI?

Keywords

Short-term International Capital Flow; RMB Exchange Rate; Stock Price; Stepwise Multivariate Regression Model.

Abstract

Recently, many hot moneys have flowed into our country, and the occurrence of the financial crisis has aggravated the uncertainty of short-term capital flows, which has attracted extensive attention from the government and academia. This paper uses step-by-step OLS method to empirically analyze the impact of RMB exchange rate and stock price on China's short-term international capital flows from 1994 to 2016 by controlling Sino-US interest rate spreads and macroeconomic conditions. The empirical results show that the RMB exchange rate has no significant correlation with short-term international capital flows, but the change of stock price will affect it. The stock price rises, the short-term international capital outflow increases. Macroeconomic indicators will also affect the short-term international capital flow in China, and there is a positive correlation between them, but the impact of China-US spreads is not obvious.

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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TY  - CONF
AU  - Yanan Guo
AU  - Kai Sun
PY  - 2019/02
DA  - 2019/02
TI  - The Impact of RMB Exchange Rate and Stock Price on Short-term Capital Flow
BT  - Proceedings of the 2018 International Symposium on Social Science and Management Innovation (SSMI 2018)
PB  - Atlantis Press
SP  - 57
EP  - 62
SN  - 2352-5428
UR  - https://doi.org/10.2991/ssmi-18.2019.11
DO  - 10.2991/ssmi-18.2019.11
ID  - Guo2019/02
ER  -