Exploring the Impact of AI on the Stock Market

Research Article
Open access

Exploring the Impact of AI on the Stock Market

Hongting Yue 1*
  • 1 College of Mathematics, Jilin University, Changchun, China    
  • *corresponding author yueht1023@mails.jlu.edu.cn
AEMPS Vol.191
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-80590-189-1
ISBN (Online): 978-1-80590-190-7

Abstract

The rapid development of artificial intelligence is reshaping the global financial competition pattern. Studying the impact of AI on China's stock market is of great theoretical and practical significance for improving market efficiency and optimizing regulatory mechanisms. However, China's stock market is facing the limitations and efficiency bottlenecks of traditional analytical methods, so there is an urgent need to explore new ways with the help of AI. Studying the impact of AI on China's stock market is of great theoretical and practical significance for improving market efficiency and optimizing regulatory mechanisms. Through empirical analysis, case comparison and international empirical studies, this paper systematically explores the application of AI in the fields of high-frequency trading, quantitative modeling and regulatory technology, and analyzes its comprehensive impact on China's stock market efficiency, structural anomalies and regulatory model. The paper concludes that AI significantly improves market information processing speed and trading efficiency, but exacerbates the deterioration of small-order liquidity and the risk of algorithmic convergence and that China's regulatory framework centered on "technologically controllable" is more adaptable than that of the U.S. and Europe, but needs to guard against algorithmic failures in extreme markets. This paper lays a theoretical foundation for the construction of a "technologically controllable regulation" system with Chinese characteristics, and provides policy guidance for balancing AI technology innovation with risk prevention and control.

Keywords:

Artificial intelligence, stock market, high-frequency trading, quantitative analysis, regulatory technology

Yue,H. (2025). Exploring the Impact of AI on the Stock Market. Advances in Economics, Management and Political Sciences,191,47-52.
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References

[1]. Kercheval, A. et al.(2014). Support Vector Machine Models for High-Frequency Limit Order Book Prediction. Journal of Financial Markets , 17(3), 1–25.

[2]. Wang, L. et al. (2018). High-Frequency Time Series Forecasting Using Stacked Denoising Autoencoders. Quantitative Finance, 18(9), 1453–1472.

[3]. Financial Technology Research Group, Chongqing Branch of the People’s Bank of China (2020). Real-Time Risk Detection System for AI-Driven Financial Regulation. Contemporary Financial Research, (06), 61–67.

[4]. Wang, L. et al. (2016). Dynamic Training Dataset Updating for Deep Neural Networks in High-Frequency Trading. IEEE Transactions on Neural Networks, 27(12), 2563–2572.

[5]. Zhou, X. et al. (2018). Stock Volatility Prediction Using Generative Adversarial Networks. Journal of Computational Finance, 22(4), 89–112.

[6]. Zhang, X. H. (2023). Accelerating Financial Information Processing with NLP: A DID Analysis of AI-Enhanced Funds. Management World, 39(5), 45–60.

[7]. Wang, Y. M. et al. (2023). Algorithmic Failure Risk in Extreme Markets: Lessons from the 2020 U.S. Stock Meltdown. China Finance, 45(7), 33–49.

[8]. Li, M. et al. (2023). Algorithmic Convergence Effect in China’s Growth Enterprise Market. Journal of Financial Innovation, 15(3), 78–95.

[9]. International Monetary Fund (IMF) (2023). Comparative Study of AI Regulatory Frameworks: China’s "Technological Controllability" vs. U.S. "Algorithmic Transparency". IMF Working Paper No. WP/23/189.

[10]. International Monetary Fund (IMF) (2023). Comparative Study of AI Regulatory Frameworks: China’s "Technological Controllability" vs. U.S. "Algorithmic Transparency". IMF Working Paper No. WP/23/189.

[11]. Zhou, G. W. et al. (2023). Quantum Reinforcement Learning for Stock Trend Prediction: A Case Study of CSI 300 Index. China FinTech Press, 12(1), 55–72.

[12]. Zhang, X. H. (2023). ESG Rating Innovation Through Government Data Integration: A Comparative Study of China and the EU. Sustainable Finance Review, 6(2), 88–104.


Cite this article

Yue,H. (2025). Exploring the Impact of AI on the Stock Market. Advances in Economics, Management and Political Sciences,191,47-52.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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About volume

Volume title: Proceedings of ICEMGD 2025 Symposium: The 4th International Conference on Applied Economics and Policy Studies

ISBN:978-1-80590-189-1(Print) / 978-1-80590-190-7(Online)
Editor:Florian Marcel Nuţă , Xuezheng Qin
Conference website: https://www.icemgd.org/
Conference date: 20 September 2025
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.191
ISSN:2754-1169(Print) / 2754-1177(Online)

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References

[1]. Kercheval, A. et al.(2014). Support Vector Machine Models for High-Frequency Limit Order Book Prediction. Journal of Financial Markets , 17(3), 1–25.

[2]. Wang, L. et al. (2018). High-Frequency Time Series Forecasting Using Stacked Denoising Autoencoders. Quantitative Finance, 18(9), 1453–1472.

[3]. Financial Technology Research Group, Chongqing Branch of the People’s Bank of China (2020). Real-Time Risk Detection System for AI-Driven Financial Regulation. Contemporary Financial Research, (06), 61–67.

[4]. Wang, L. et al. (2016). Dynamic Training Dataset Updating for Deep Neural Networks in High-Frequency Trading. IEEE Transactions on Neural Networks, 27(12), 2563–2572.

[5]. Zhou, X. et al. (2018). Stock Volatility Prediction Using Generative Adversarial Networks. Journal of Computational Finance, 22(4), 89–112.

[6]. Zhang, X. H. (2023). Accelerating Financial Information Processing with NLP: A DID Analysis of AI-Enhanced Funds. Management World, 39(5), 45–60.

[7]. Wang, Y. M. et al. (2023). Algorithmic Failure Risk in Extreme Markets: Lessons from the 2020 U.S. Stock Meltdown. China Finance, 45(7), 33–49.

[8]. Li, M. et al. (2023). Algorithmic Convergence Effect in China’s Growth Enterprise Market. Journal of Financial Innovation, 15(3), 78–95.

[9]. International Monetary Fund (IMF) (2023). Comparative Study of AI Regulatory Frameworks: China’s "Technological Controllability" vs. U.S. "Algorithmic Transparency". IMF Working Paper No. WP/23/189.

[10]. International Monetary Fund (IMF) (2023). Comparative Study of AI Regulatory Frameworks: China’s "Technological Controllability" vs. U.S. "Algorithmic Transparency". IMF Working Paper No. WP/23/189.

[11]. Zhou, G. W. et al. (2023). Quantum Reinforcement Learning for Stock Trend Prediction: A Case Study of CSI 300 Index. China FinTech Press, 12(1), 55–72.

[12]. Zhang, X. H. (2023). ESG Rating Innovation Through Government Data Integration: A Comparative Study of China and the EU. Sustainable Finance Review, 6(2), 88–104.