The Impact Of People’s Daily On China Stock Market

Chinese stock market has gone through fierce price fluctuation、high price fluctuation frequency and a series of problems, caucused by many factors. These problems have seriously affected the stability, healthy development of Chinese stock market, as well as the interests of the investors. Authority usually use People’s Daily to adjust and calibrate the stock market These comments carry the government macroeconomic control intent.How will the Peoples’Daily comment affect the stock, as a political regulation method? The correlation factor could be different between optimistic and pessimistic comment on the stock?In order to answer these questions, This paper begin with a brief summary of background, significance of research and research summary carried out at home and abroad,Then with content of this paper’s study,following the theoretical and demonstration on the effect of "People’s Daily" on China’s stock market. The theory is based on the Behavior Commercial knowledge.The demonstration facts are based on the high dependence on policies of the Chinese stock market. Peoples’Daily, as a Party paper, is spreading the policies of the government, by use of the big sale volume and huge influence on Chinese people. So it can be predicted that the comments of the Peoples’Daily on the stock have some microeconomic control function on the stock market, to some extent. That analysis lay the foundation for following qualitative and quantitative analysis, which showed that there is a significant correlation between the published People’s Daily commentary and the stock’s volatility.The impact of the people’s Daily comment on the stock index has a significant lag.Different regulatory has different intensity and duration of effect.The positive comments on the stock market have strong intensity than the negative comments. The stock index response much faster for the negative comments than the positive comments.As the authority regulation frequency grows higher, the regulation effect on the stock market will grow less stronger. In order to analysis the effect intensity of the emotional comments on the stock market, emotional quantity method is used,following the demonstration and event analysis.The analysis shows that the emotional intensity of the authority also affects the stock market. This emotional intensity plays a big role in maintaining the healthy stock market with the public regulation.In addition, the investors are more easy to make rational investment decisions and avoid losses.