The effects of economic and political events on the behaviour of Stock Market Index in China

摘要

As an emerging stock market and under the centrally control of the Government, the Chinese Stock Market has been identified as being partially segmented from global capital markets. As a consequence, the local economic factors and the Government policies are the primary influences of the movements of the Chinese Stock Market Indices. This article seeks to address the question of whether local macroeconomic variables and the political events have explanatory power over stock returns of the Chinese Stock Market.