The Influence Analysis Of China Stock Market On Indonesia Stock Market

The purpose of this study is to determine the effect of Shanghai Stock Exchange and Shenzhen Stock Exchange on Indonesian Stock Exchange and to understand whether the abnormal return variable,trading value variable,and trading volume variable on Shanghai stock exchange and Shenzhen stock exchange affect Indonesia stock price index(IHSG).The variables used in this research are trading volume,trading value,abnormal return and IHSG.Data collection using a purposive sampling method against the audited financial statements of companies listed in Indonesia Stock Exchange,Shanghai Stock Exchange and Shenzhen Stock Exchange in the period 2007 to 2016 years.With 526 audited financial companies that are used as sample.This study used a multiple regression analysis to know the influence of the variables mentioned above.The result of this research is trading value variable and trading volume variable on Shanghai stock exchange has no affect Indonesia stock price index(IHSG),but abnormal return variable on Shanghai stock exchange affect Indonesia stock price index(IHSG),and trading value variable and abnormal return variable on Shenzhen stock exchange affect Indonesia stock price index(IHSG),but trading value variable on Shenzhen stock exchange has no affect Indonesia stock price index(IHSG).The conclusion that is the Indonesian capital market is closely linked to the China capital market.