Chinese Stock

The current issue and full text archive of this script is available at www.emeraldinsight.com/0307-4358.htm MF 34,11 744 Analysis of the long-term family unit between macro economical variables and the Chinese declination commercialise engagement heteroscedastic cointegration Ming-Hua Liu Faculty of Business, Department of finance, Auckland University of Technology, Auckland, New Zealand, and Keshab M. Shrestha Nanyang Business School, Nanyang Technological University, capital of Singapore Abstract employment The purpose of this stem is to investigate the fork out between the Chinese stock market indices and a dress of macro-economic variables, i.e. money supply, industrial production, inflation, exchange rate and interest rates. spirit/methodology/ improvement The aims of this paper are addressed use heteroscedastic cointegration compendium. Findings Results show that the cointegrating birth does exist between stock prices and the macro-economic variables in the highly defective Chinese stock market. Detailed analysis shows stock market performance is positively related to that of macro- economic system in the long term. investigate limitations/implications The results imply that in the long run, investors can benefit in terms of remediate returns and portfolio diversification as the Chinese economy is expected to uphold to perform strongly. Originality/value The main contributions of this paper are two-fold: first, this is the first paper to examine the long-term relationship between the stock market indices and macro-economic variables in China, one of largest economies in the world. Second, heteroscedastic cointegration analysis is employ and hence this paper controls for time-varying volatility. Keywords Stock markets, China, Macro-economics, statistical analysis piece type Research paper Managerial Finance Vol. 34 No. 11, 2008 pp. 744-755 # Emerald Group Publishing Limited 0307-4358 inside 10.1108/030743508 10900479 1. admission Numerous studies h! ave analyzed how...If you want to desex a full essay, order it on our website: OrderEssay.net

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