The Impact of 2015 China Stock Market Crash on the Stock Market in Taiwan

  • 李 秉勳

Student thesis: Master's Thesis

Abstract

After the signing of the Economic Cooperation Framework Agreement (hereafter the ECFA) the relationship between China and Taiwan became closely linked In recent years China has been the largest importer and exporter to Taiwan and international funds flow into China’s capital market through Taiwan and Hong Kong Therefore impacts of the China stock market crash on Taiwan were unavoidable In addition to China’s stock market crash we also add other macroeconomic variables to examine their effects on Taiwan The weighted price index of the Taiwan Stock Exchange is set as the dependent variable in this study The independent variables are the Shanghai Composite Index & the Shenzhen Component Index values of exports to China in Taiwan the unemployment rate the CPI the Dow Jones industrial average Index the Taiwan rediscount rate gold price oil price and the money supply in Taiwan The empirical results show that the Chinese stock market crash in 2015 had a negative impact on the Taiwan Stock Market The Shanghai Composite Index had a significantly positive effect on the Taiwan Stock Market The Shenzhen Component Index and the CPI had a significantly negative relationship with the Taiwan Stock Market Oil price and the Dow Jones Industrial Average Index had a significantly positive relationship with the Taiwan Stock Market
Date of Award2016 Jun 24
Original languageEnglish
SupervisorHsin-Hong Kang (Supervisor)

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