The Study of the Development of Chinese Stock Market Based on Factor Analysis
Author(s) -
Yu Lu,
Xiao-wan Hu,
Kun Guo
Publication year - 2015
Publication title -
procedia computer science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.334
H-Index - 76
ISSN - 1877-0509
DOI - 10.1016/j.procs.2015.07.097
Subject(s) - stock market , market liquidity , speculation , computer science , index (typography) , investment (military) , capital market , stock market index , stock (firearms) , irrational number , finance , economics , mathematics , mechanical engineering , paleontology , geometry , horse , politics , world wide web , political science , law , biology , engineering
The article chooses nine indicators from scale, liquidity, financing function, investment function and effectiveness of stock market, using factor analysis to simplified them to three comprehensive indicators: capital allocation, investment and financing level and operation, then focuses on the different weight of each index based on its influence degree to build the index which can fully reflect the development of Chinese stock market. The results show that although the overall development of Chinese stock market in 2003-2012 was on the rise, there are still many problems, such as inefficient operation, the prevailing wind of speculation and the irrational investment behaviour
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