Research on the Impact of International Crude Oil and International Gold Price on China's Stock Market

Hu Feng

doi:doi:10.11648/j.ebm.20220801.13

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Research on the Impact of International Crude Oil and International Gold Price on China's Stock Market

Hu Feng

Published in European Business & Management (Volume 8, Issue 1)

Received: 26 January 2022 Accepted: 16 February 2022 Published: 28 February 2022

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Abstract

This dissertation uses the VAR model to research the dynamic relationship between the Chinese stock market, global gold prices and global oil prices. To compare the changes in the correlation between the variables before the financial crisis and the variables after the financial crisis, this dissertation divides the data into two parts, namely the data after the financial crisis and the data before the financial crisis, and then We compare the data analysis of the two parts to obtain the changes in the correlation between variables after the financial crisis. We find that there is no long-term equilibrium relationship between gold, crude oil and the CSI 300 stock index of China, either after or during the financial crisis. However, this dissertation found that during the financial crisis, the relationship between variables changed. In the conclusion part, this dissertation explained the possible reasons for the changes in the correlation between variables from several aspects. At the same time, we compared the actual situation with the theoretical analysis, and we found that after the financial crisis, the actual situation and the theoretical analysis have been different. By studying the potential connections between these variables, we can better formulate policies and give better investment recommendations.

Published in	European Business & Management (Volume 8, Issue 1)
DOI	10.11648/j.ebm.20220801.13
Page(s)	20-27
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Stock Market Index, China, International Crude Oil, Gold Price, Correlation

References

[1]	Adekoya, O. and Oliyide, J. 2021. How COVID-19 drives connectedness among commodity and financial markets: Evidence from TVP-VAR and causality-in-quantiles techniques. Resources Policy 70, p. 101898. doi: 10.1016/j.resourpol.2020.101898.
[2]	Ahmed, A. and Huo, R. 2021. Volatility transmissions across international oil market, commodity futures and stock markets: Empirical evidence from China. Energy Economics 93, p. 104741. doi: 10.1016/j.eneco.2020.104741.
[3]	Beattie, A. 2022. How Oil Prices Impact the U.S. Economy. Available at: https://www.investopedia.com/articles/investing/032515/how-oil-prices-impact-us-economy.asp.
[4]	Bernanke, B. 2021. The relationship between stocks and oil prices. Available at: https://www.brookings.edu/blog/ben-bernanke/2016/02/19/the-relationship-between-stocks-and-oil-prices.
[5]	Chang, H., Huang, L. and Chin, M. 2013. Interactive relationships between crude oil prices, gold prices, and the NT–US dollar exchange rate—A Taiwan study. Energy Policy 63, pp. 441-448. doi: 10.1016/j.enpol.2013.09.029.
[6]	Chang, R. 2021. Financial Technology: China’s Stock Markets vs U.S. Stock Markets. E3S Web of Conferences 275, p. 01006. doi: 10.1051/e3sconf/202127501006.
[7]	Hashimzade, N., Myles, G., & Black, J. (2017). Johansen’s approach. In A Dictionary of Economics.: Oxford University Press. Retrieved 14 Feb. 2022.
[8]	Mensi, W., Hkiri, B., Al-Yahyaee, K. and Kang, S. 2018. Analyzing time–frequency co-movements across gold and oil prices with BRICS stock markets: A VaR based on wavelet approach. International Review of Economics & Finance 54, pp. 74-102. doi: 10.1016/j.iref.2017.07.032.
[9]	Muramalla, V. and Alqahtani, H. 2020. LONG RUN ASSOCIATION OF OIL PRICES AND STOCK PRICES: A CASE OF INDONESIA. International Journal of Energy Economics and Policy 10 (5), pp. 593-600.
[10]	Singh, N. and Sharma, S. 2018. Phase-wise analysis of dynamic relationship among gold, crude oil, US dollar and stock market. Journal of Advances in Management Research 15 (4), pp. 480-499. doi: 10.1108/jamr-12-2017-0124.
[11]	Zou, X. 2018. An analysis of the effect of carbon emission, GDP and international crude oil prices based on synthesis integration model. International Journal of Energy Sector Management 12 (4), pp. 641-655. doi: 10.1108/ijesm-10-2017-0013.

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Hu Feng. (2022). Research on the Impact of International Crude Oil and International Gold Price on China's Stock Market. European Business & Management, 8(1), 20-27. https://doi.org/10.11648/j.ebm.20220801.13

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Hu Feng. Research on the Impact of International Crude Oil and International Gold Price on China's Stock Market. Eur. Bus. Manag. 2022, 8(1), 20-27. doi: 10.11648/j.ebm.20220801.13

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AMA Style

Hu Feng. Research on the Impact of International Crude Oil and International Gold Price on China's Stock Market. Eur Bus Manag. 2022;8(1):20-27. doi: 10.11648/j.ebm.20220801.13

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@article{10.11648/j.ebm.20220801.13,
  author = {Hu Feng},
  title = {Research on the Impact of International Crude Oil and International Gold Price on China's Stock Market},
  journal = {European Business & Management},
  volume = {8},
  number = {1},
  pages = {20-27},
  doi = {10.11648/j.ebm.20220801.13},
  url = {https://doi.org/10.11648/j.ebm.20220801.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ebm.20220801.13},
  abstract = {This dissertation uses the VAR model to research the dynamic relationship between the Chinese stock market, global gold prices and global oil prices. To compare the changes in the correlation between the variables before the financial crisis and the variables after the financial crisis, this dissertation divides the data into two parts, namely the data after the financial crisis and the data before the financial crisis, and then We compare the data analysis of the two parts to obtain the changes in the correlation between variables after the financial crisis. We find that there is no long-term equilibrium relationship between gold, crude oil and the CSI 300 stock index of China, either after or during the financial crisis. However, this dissertation found that during the financial crisis, the relationship between variables changed. In the conclusion part, this dissertation explained the possible reasons for the changes in the correlation between variables from several aspects. At the same time, we compared the actual situation with the theoretical analysis, and we found that after the financial crisis, the actual situation and the theoretical analysis have been different. By studying the potential connections between these variables, we can better formulate policies and give better investment recommendations.},
 year = {2022}
}

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TY  - JOUR
T1  - Research on the Impact of International Crude Oil and International Gold Price on China's Stock Market
AU  - Hu Feng
Y1  - 2022/02/28
PY  - 2022
N1  - https://doi.org/10.11648/j.ebm.20220801.13
DO  - 10.11648/j.ebm.20220801.13
T2  - European Business & Management
JF  - European Business & Management
JO  - European Business & Management
SP  - 20
EP  - 27
PB  - Science Publishing Group
SN  - 2575-5811
UR  - https://doi.org/10.11648/j.ebm.20220801.13
AB  - This dissertation uses the VAR model to research the dynamic relationship between the Chinese stock market, global gold prices and global oil prices. To compare the changes in the correlation between the variables before the financial crisis and the variables after the financial crisis, this dissertation divides the data into two parts, namely the data after the financial crisis and the data before the financial crisis, and then We compare the data analysis of the two parts to obtain the changes in the correlation between variables after the financial crisis. We find that there is no long-term equilibrium relationship between gold, crude oil and the CSI 300 stock index of China, either after or during the financial crisis. However, this dissertation found that during the financial crisis, the relationship between variables changed. In the conclusion part, this dissertation explained the possible reasons for the changes in the correlation between variables from several aspects. At the same time, we compared the actual situation with the theoretical analysis, and we found that after the financial crisis, the actual situation and the theoretical analysis have been different. By studying the potential connections between these variables, we can better formulate policies and give better investment recommendations.
VL  - 8
IS  - 1
ER  -

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Author Information

Hu Feng

School of Business and Management, Cardiff University, Cardiff, United Kingdom

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APA Style

Hu Feng. (2022). Research on the Impact of International Crude Oil and International Gold Price on China's Stock Market. European Business & Management, 8(1), 20-27. https://doi.org/10.11648/j.ebm.20220801.13

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ACS Style

Hu Feng. Research on the Impact of International Crude Oil and International Gold Price on China's Stock Market. Eur. Bus. Manag. 2022, 8(1), 20-27. doi: 10.11648/j.ebm.20220801.13

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AMA Style

Hu Feng. Research on the Impact of International Crude Oil and International Gold Price on China's Stock Market. Eur Bus Manag. 2022;8(1):20-27. doi: 10.11648/j.ebm.20220801.13

Copy | Download

@article{10.11648/j.ebm.20220801.13,
  author = {Hu Feng},
  title = {Research on the Impact of International Crude Oil and International Gold Price on China's Stock Market},
  journal = {European Business & Management},
  volume = {8},
  number = {1},
  pages = {20-27},
  doi = {10.11648/j.ebm.20220801.13},
  url = {https://doi.org/10.11648/j.ebm.20220801.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ebm.20220801.13},
  abstract = {This dissertation uses the VAR model to research the dynamic relationship between the Chinese stock market, global gold prices and global oil prices. To compare the changes in the correlation between the variables before the financial crisis and the variables after the financial crisis, this dissertation divides the data into two parts, namely the data after the financial crisis and the data before the financial crisis, and then We compare the data analysis of the two parts to obtain the changes in the correlation between variables after the financial crisis. We find that there is no long-term equilibrium relationship between gold, crude oil and the CSI 300 stock index of China, either after or during the financial crisis. However, this dissertation found that during the financial crisis, the relationship between variables changed. In the conclusion part, this dissertation explained the possible reasons for the changes in the correlation between variables from several aspects. At the same time, we compared the actual situation with the theoretical analysis, and we found that after the financial crisis, the actual situation and the theoretical analysis have been different. By studying the potential connections between these variables, we can better formulate policies and give better investment recommendations.},
 year = {2022}
}

Copy | Download

TY  - JOUR
T1  - Research on the Impact of International Crude Oil and International Gold Price on China's Stock Market
AU  - Hu Feng
Y1  - 2022/02/28
PY  - 2022
N1  - https://doi.org/10.11648/j.ebm.20220801.13
DO  - 10.11648/j.ebm.20220801.13
T2  - European Business & Management
JF  - European Business & Management
JO  - European Business & Management
SP  - 20
EP  - 27
PB  - Science Publishing Group
SN  - 2575-5811
UR  - https://doi.org/10.11648/j.ebm.20220801.13
AB  - This dissertation uses the VAR model to research the dynamic relationship between the Chinese stock market, global gold prices and global oil prices. To compare the changes in the correlation between the variables before the financial crisis and the variables after the financial crisis, this dissertation divides the data into two parts, namely the data after the financial crisis and the data before the financial crisis, and then We compare the data analysis of the two parts to obtain the changes in the correlation between variables after the financial crisis. We find that there is no long-term equilibrium relationship between gold, crude oil and the CSI 300 stock index of China, either after or during the financial crisis. However, this dissertation found that during the financial crisis, the relationship between variables changed. In the conclusion part, this dissertation explained the possible reasons for the changes in the correlation between variables from several aspects. At the same time, we compared the actual situation with the theoretical analysis, and we found that after the financial crisis, the actual situation and the theoretical analysis have been different. By studying the potential connections between these variables, we can better formulate policies and give better investment recommendations.
VL  - 8
IS  - 1
ER  -

Copy | Download