Decision Sciences
8 years ago

Stock futures market predicts spot market rise, impacting Chinese stock indices.

Journal of Chongqing Technology and Business University
Empirical Research into the Relationship between Stock Futures Market and Spot Market in China——Futures Index and Spot Index Based on Shanghai and Shenzhen 300 Stock Index
Lin Li

Paper Summary

The study found that there is a strong connection between the futures and spot stock markets in China. The spot market can predict the futures market, and when the spot index goes up, the futures market index also goes up. The futures market has a positive influence on the spot market in the long term, but its effects differ between Shanghai and Shenzhen stock markets.

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