Research on the influence of investors’ confidence on Chinese stock price

Abstract

In China, there are more individuals started to invest in the stock market. However, individuals are more likely to be affected by their invest confidence. As a result, it is important to pay more attention to investors’ confidence. This research tries to examine the relationship between investors’ confidence and the stock price in China’s A-share in the Shanghai Stock Exchange. To analyze the topic, I will investigate investors’ confidence and stock prices in two periods, which are 2014 to 2015 and 2018 to 2019. Meanwhile, I will analyze the main events happened in these two periods that may cause the changes in investors’ confidence and stock prices. By comparing two different periods – one is the bull market and the other is bear market, I will find some factors that may influence investors’ confidence. For data of investors’ confidence index, I will collect secondary data from reliable sources. Also, according to the huge amount of Chinese stocks are available in the market, I choose to use the Shanghai securities composite index as the stock price. Finally, I will arrange and analyze the data I collected to test my hypothesis.