Date of Award

1-1-2019

Document Type

Masters Thesis

Degree Name

M.A.

Organizational Unit

College of Arts Humanities and Social Sciences, Economics

First Advisor

Yasar Yavuz, Ph.D.

Second Advisor

Thomas Nail, Ph.D.

Keywords

China, Stock market, Government policies

Abstract

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 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.

Publication Statement

Copyright is held by the author. User is responsible for all copyright compliance.

Rights Holder

Yanshen Qi

Provenance

Received from ProQuest

File Format

application/pdf

Language

en

File Size

81 p.

Discipline

Economics



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