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Download or read book China's Stock Market. Impact of Investor's Sentiment on Returns of Stocks written by Clement Bill and published by GRIN Verlag. This book was released on 2023-01-10 with total page 27 pages. Available in PDF, EPUB and Kindle. Book excerpt: Academic Paper from the year 2021 in the subject Business economics - Investment and Finance, grade: 99.5, Peking University (BUSINESS INSTITUTE), course: Finance, language: English, abstract: This study examined the effect of investor sentiment on return in the China stock market for a period of nineteen years from 2000 to 2019. The survey used both granger causality and the OLS regression techniques to analyze the data. Accordingly, the findings from the study have revealed that investor sentiment has a remarkable positive impact on stock market returns by examining Treasury bills, consumer price index, and industrial production index. Also, the study has unfolded that unidirectional causality operates from investor sentiment to stock market returns. Reportedly, the study has established that stockholder sentiments have relatively lower explanatory power to returns on the stock market. Finally, this study posits the presence of dynamic correlation between the action of stock future returns and investor sentiment in China causes an increase in stock prices.