The Transaction-Driven Performance of SSE Composite Index from year 2022 to 2024

Abstract

This paper explores the dynamic linkage between the China’s stock market and some major economic indicators from May 2022 to December 2024. The results show that stock trading turnover significantly and positively affects SSE Composite Index prices, M1 has no effect on SSE, while the industrial value-added growth is negatively correlated with SSE. The findings reveal that during the volatile post-COVID period, China’s stock market performance has been dominated by the market transaction activities, with a weakened monetary policy transmission linkage and a temporary reverse connection with the real economy. This study could provide empirical references for policy makers and investors.