- 期刊
Research on Effects of COVID-19 on China's Stock Market
摘要
Since the establishment of China's stock market in 1991, it has had 30 years of development, and money supply has gradually become one of the major factors affecting the stock market. Under general condition, the changes of monetary policy trigger stock price volatility by altering the money supply, which ultimately has an impact on investment and the overall economy. In a known long term market situation, the qualitative research and quantitative analysis about the effect of money supply on stock prices is conductive to the monetary authorities to formulate monetary policy and also can effectively encourage people to invest more. It also has the certain promotion function on open policy transmission channels and normal operation guarantee of stock market. Especially after the epidemic, the stock market can well reflect the influence of coronavirus on China's stock market and economy. The purpose of this paper is to investigate the impact of money supply and exchange rate movements on stock prices in long term stages. On the basis of combing the existing literature, firstly, we have theoretical analysis on it and then we studied the correlation between money supply and stock prices by using the method of descriptive statistics. At the same time, we use the ADF test and VAR model to study the impact of money supply on stock prices under different monetary policy background. Finally, we have the empirical analysis of the ways which affect stock prices. The result of our research shows that in order to stabilize China stock market we put forward suggestions to comprehensively improve the market efficiency First, making great efforts to improve the business environment and further promote the reform of the business environment in line with international standards. Besides, we need to strengthen the policy of opening-up and expand the entire industrial chain to strengthen domestic independent supply.