Study On Effects Of Different Currency Supply Statistics Index On Stock Market Price

Along with the rapid development of China’s economy and the change in the form offunds of the residents, the amount of funds with strong mobility is much less than the M1itself, on the basis of division standards of the international currency supply and the actualfinancial situation in China, this paper raises Currency supply M1+, that is, money supplyM1plus demand savings deposits of residents.As observing China’s stock market, therelevant people spot such a phenomenon that the early period of the stock market’s ups anddowns fluctuations are accompanied by a significant amount of growth rates of Currencysupply M1+since2007. The change process are following: in2007the amount of growthrate of the Currency supply M1+is rising, while the index in Shanghai reached the highestpoint of5954.77points to October; CPI got over5%in2007, triggering austerity in2008together with the growth rate of Currency supply M1+going flat, this time highlightingthe corporate crisis, the stock market downturn; trillion outbreak brings mobility in2009,the growth rate of Currency supply M1+climbing, has been extended to2010.Then thestock market rose from3277.13points to1820.81points by the end of2008; the growthrate of money supply M1+in2001and went flat in2012, rising again in2013, which isconsistent with the trend of the stock market at the time, into the shock circling period.These indicators and data show that:the growth rate of Currency supply M1+for China’sstock market was significantly affected, and can predict the trends of the stock market.Currency supply M1+contains a great deal of economic information, use the informationto grasp the stock market, and it has a very important significance investors and policymakers.But making conclusion is based on the surface data is not convincing enough.Therefore, this large amount of data processed by means of charts and analysis,econometric analysis using VAR models to test the growth rate of Currency supply M1+than the growth rate of money supply M1, M2and M1and M2growth rate difference onChina stock market prices have a more significant impact. The final measurement resultsdemonstrate the superiority of the author’s judgment of the impact on the stock market price of the growth rate of Currency supply M1+.Whether it is for investors or the monetary policy makers, the conclusion of the studyhas great reference significance. Thus, monetary policy makers in the formulation ofmonetary policy, it is necessary to consider the money supply, M1+impact on the stockmarket, while investors invested in the stock market, we should also focus on the changesin the Currency supply M1+and combined with the specific market situation investment.