The Effects of Fundamentals, Speculation, Government Policies, and International Capital Flows on China's Stock Market

<p>This paper, based on the relationship between the economy, policy and the financial market seeks to explore the leading force in China's stock market and identify how the government policies affect the stock market, through an analysis of the performance of the Shanghai Stock Exchange Index over the past 10 years. Comparing the stocks' intrinsic value to their market price can present an aerial view of China's stock market. When the market prices deviated from fundamentals, we can find what government did to respond to the market and lead market opinions.</p> <p>Through our estimation, comparing the sample fundamental prices with the sample market prices, the market prices are consistent with fundamentals, besides the boom and bust in 2008 and 2015. Beyond fundamentals, we also looked at another three determinants of stocks' prices: speculation, government intervention through policy or open market trading, and the capital flows or international hot money. Our main finding is that fundamentals are still a core determinant in China's Stock Market.</p>

Name thesis:degree_name

M.A.

Level thesis:degree_level

Masters Thesis

Year dc:date.available

2019

Author dc:creator

• Qi, Yanshen

Contributors dc:contributor

• Yasar Yavuz, Ph.D.
• Thomas Nail, Ph.D.

• China
• Stock market
• Government policies
• Asian Studies
• Economics
• International and Area Studies
• Regional Economics

Statement dc:rights

• <p>Copyright is held by the author. User is responsible for all copyright compliance.</p>

Language dc:language

en

Repository record dc:identifier

https://digitalcommons.du.edu/etd/1684

OAI identifier oai:identifier

oai:digitalcommons.du.edu:etd-2684