The Exchange Rate of RMB Has Positive Influence to Chinese Stock Prices
DOI:
https://doi.org/10.54097/fbem.v5i3.1913Keywords:
Exchange rate, Stock price, Multiple linear regressionAbstract
After the exchange rate reform on August 11, 2015, the RMB exchange rate has had an increasing impact on my country's stock price. The study of exchange rate changes plays a very important role in stabilizing a country's stock price. This paper first introduces the transmission mechanism of exchange rate to stock prices from three aspects, and then establishes a multiple linear regression equation, using the closing price of the CSI 500 Index and the exchange rate of RMB against the US dollar as the descriptive indicators of the stock price and exchange rate, respectively, and the consumer price Index, producer price index, purchasing manager index, and money supply are used as control variables to empirically test the effect. Finally, the conclusion is drawn that my country's stock price and the RMB exchange rate change in the same direction.
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