THE IMPACT OF MACROECONOMIC FACTORS ON STOCK PRICES INDEX IN CHINA

Abstract

There are many macroeconomic variables influencing the stock market index since stock market always been an important indicator of economic growth. In this study, the main focus would be in China. In this study, we examined the impact of selected macroeconomic variables namely interest rate, exchange rate, inflation rate, crude oil price and gold price and stock market index in China, Shanghai Composite Index. This study employs monthly time series data spanning the period from year 2008 to
2019. By applying Multiple Linear Model, the empirical results suggest that all the variables are significantly impacted on Chinese stock market performance, during crisis and post Asian financial crisis.