Inflation and money supply drive stock prices in China, study finds.
The study looked at how inflation, money supply, exchange rates, and interest rates affect stock prices in China. They found that inflation and money supply impact the Stock Price Index, but exchange rates and interest rates don't have a significant effect. This shows that the relationship between macroeconomics and stock prices in China is different from other countries. The study suggests that understanding these relationships can help investors make better decisions in the stock market.