The Impact Of Stock Price Fluctuation On Chinese Real Economy

The stock market of our country was established relatively late, which is still not mature. It is not uncommon to see stock price at times increasing and others decreasing drastically during the decade. The scope and depth of Chinese stock market had been improving since the non-tradable shares reform, arid stock market occupies an increasingly important position in national economy. There is more discussions about the impact extent of stock price fluctuation on Chinese real economy.In this paper, we analyze the impact of stock market on consumption and investment from theoretical prospect. And then analyze this impact from empirical perspective, using econometrics method such as VAR model, cointegraiton test and impulse response function etc. After that, we analyze the different impact of stock price on Chinese east, central and west areas with provincial panel data. Results from empirical analysis indicate that the impact of Chinese stock price on consumption and investment is not noticeable. Besides, the impact of stock price on east areas is relatively remarkable.The innovation of this paper is that we analyze the different impact of stock price on Chinese three areas. What's more, the latest data after financial crisis is adopted, which reflect our stock market better. All these make the empirical results more persuasive and has more practical significance for the formulation of related policy.