Social and Behavioral Sciences Commons^™

The Effects Of Fundamentals, Speculation, Government Policies, And International Capital Flows On China's Stock Market, Yanshen Qi

Electronic Theses and Dissertations

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.

Through our estimation, comparing the sample fundamental prices with …