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Empirical Analysis of the Impact of Monetary Policy on the Return Rate of Chinese Stock Market
- 1 Northeastern University, 195 Chuangxin Road, Shenyang, China, 110167
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Abstract
Monetary policy as a typical means of macro-control, its impact on the stock market is the key issue of this research, has a very important research value. This paper uses literature analysis to sort out relevant literature from the aspects of whether monetary policy affects the stock market, the channels of influence, the characteristics of influence, etc., and summarizes the relevant theories of monetary policy affecting the stock market. Then, the influence mechanism of the two intermediary channels, credit effect and asset portfolio effect, was analyzed, corresponding hypotheses were proposed, and the corresponding intermediary effect model was established. The monthly data of the stock market return rate of the whole Shanghai Stock market from January 2015 to November 2024 were selected as the research object, and the individual fixed effect model was used to control the industry effect. Three kinds of intermediary effects are used to explore the mechanism of monetary policy affecting stock market returns. Finally, the conclusion is drawn: first, the broad money quantity, the statutory deposit reserve and the medium-term lending facility will affect the return rate of the stock market; Second, the loosening of monetary policy will promote the rise of stock market through credit effect; Third, the easing of monetary policy will promote the rise of the stock market through the portfolio effect.
Keywords
Monetary policy, stock market return, mediating effect
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Cite this article
Gao,H. (2025). Empirical Analysis of the Impact of Monetary Policy on the Return Rate of Chinese Stock Market. Advances in Economics, Management and Political Sciences,165,33-42.
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