Author(s)

Benzong Yu ¹, Yang Xu ², Anne-Marie Cambiotti ¹

Affiliation(s)

¹ Harper Adams University, Newport, United Kingdom
² Beijing University of Agriculture, Beijing, China

Corresponding Author

Yang Xu

ABSTRACT

The purpose of this study is to examine the extent to which macroeconomic indicators (GDP, interest rate, exchange rate, inflation rate) influence the willingness of Chinese individual investors to invest in A-shares. The results show a weak to moderately significant positive effect of GDP on investment intentions, as do interest rates and exchange rates. Whereas, inflation rate has insignificant effect on investment intention which may be due to slight fluctuation in inflation rate and policy regulation during the sample period. All the other three hypotheses are supported except inflation. This study provides insights into the impact of macroeconomic indicators on investment intentions in China's A-share market, which is dominated by individual investors, and quantifies the direction and strength of the effect of each macroindicator, laying the foundation for further research to validate these insights with random sampling.

KEYWORDS

China A Shares, Macroeconomic Indicators, Investor Willingness to Invest

CITE THIS PAPER

Benzong Yu, Yang Xu, Anne-Marie Cambiotti, The Impact of Macroeconomic Indicators on Chinese Individual Investors' Willingness to Participate in the Stock Market - The Case of Chinese Stocks. Financial Engineering and Risk Management (2025) Vol. 8: 96-108. DOI: http://dx.doi.org/10.23977/ferm.2025.080210.

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