The Influence of Capital Flows on Stock Price Fluctuations

Jimin Cai ()
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Jimin Cai: Shanghai Institute of Visual Arts

A chapter in Proceedings of the 2023 International Conference on Finance, Trade and Business Management (FTBM 2023), 2023, pp 520-527 from Springer

Abstract: Abstract In the stock market, the capital flow index, as a measure and measurement tool, is a common reference index for stock investors in the process of investment. On the one hand, it can provide technical advice for stock investors to make investment decisions. On the other hand, it can provide theoretical basis for financial managers to formulate policies. This paper makes a theoretical analysis of the relationship between capital, capital flow information and capital and stock price, and discusses the relationship between main capital, transaction capital and Shenzhen component index price. Empirical findings show that capital flow is positively correlated with stock price volatility. Based on the above research conclusion, in order to promote the healthy development of Chinese stock market, this paper puts forward the following relevant policy recommendations: Second, strengthen the supervision of the securities market, improve the quality of listed companies, optimize the ecology of the stock market, effectively protect the legitimate rights and interests of small and medium-sized investors, and cultivate the long-term investment and value investment concept of individual investors.

Keywords: Capital flow; Stock price; market (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-298-9_56

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DOI: 10.2991/978-94-6463-298-9_56

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