Research on the Relationship Between the Volume of Shenzhen Stock Market and Economic Growth
Guanglu Li, Susheng Wang
Available Online 1 May 2020.
- https://doi.org/10.2991/assehr.k.200428.036How to use a DOI?
- volume, Shenzhen stock market, the GDP growth, over booming stock market, crowding out effect
- In 2019, the trading volume of Shenzhen stock market increased by 46.38%,which contributing 0.1% to China’s GDP growth, 0.41% to Guangdong’s GDP growth and 0.30% to Shenzhen’s GDP growth. The impact of the turnover of stock market on economic growth is different in different stages of the development of stock market in China. Under the current economic situation, the turnover of stock market is highly positively related to economic growth. According to the impact of turnover growth on the growth of financial industry, the result of estimating the growth of turnover growth on GDP growth in Shenzhen stock market shows that every doubling of turnover growth in Shenzhen stock market can contribute 0.24% to China’s GDP growth, 0.93% to Guangdong’s GDP growth, and 0.60% to Shenzhen’s GDP growth. From the perspective of the development of the securities market, moderately prosperous stock market can improve the efficiency of market resource allocation, expand the scale of corporate direct financing and enhance the expected economic growth, and promote the development of the real economy. The over booming stock market will not only cause crowding out of savings, but also lead to stock market bubbles, increase market risk exposure, and endanger financial stability.
- Open Access
- This is an open access article distributed under the CC BY-NC license.
Cite this article
TY - CONF AU - Guanglu Li AU - Susheng Wang PY - 2020 DA - 2020/05/01 TI - Research on the Relationship Between the Volume of Shenzhen Stock Market and Economic Growth BT - Proceedings of the 6th International Conference on Humanities and Social Science Research (ICHSSR 2020) PB - Atlantis Press SP - 154 EP - 158 SN - 2352-5398 UR - https://doi.org/10.2991/assehr.k.200428.036 DO - https://doi.org/10.2991/assehr.k.200428.036 ID - Li2020 ER -