Stock prices are affected by many factors, which can generally be divided into three categories: internal market factors, fundamentals and policy factors.
Factors affecting the stock market:
Economic factors
Economic cycle, the country’s financial situation, financial environment, international balance of payments, changes in the economic status of the industry, Adjustments to the country's exchange rate will affect the rise and fall of stock prices.
The economic cycle is an economic fluctuation caused by the inherent contradictions of economic operation. It is an objective law that does not depend on people's will. The stock market is directly affected by economic conditions and will inevitably show cyclical fluctuations. When the economy is in recession, the stock market will inevitably weaken and fall; when the economy recovers and prospers, the stock price will also rise or show a strong upward trend. Based on past experience, the stock market is often a barometer of economic conditions.
If the country's fiscal situation experiences greater inflation, stock prices will fall, and when fiscal expenditures increase, stock prices will rise.
The financial environment is relaxed, market funds are sufficient, interest rates are falling, and the deposit reserve ratio is lowered. A lot of hot money will be transferred from banks to the stock market, and stock prices tend to rise; the country tightens money, market funds are in short supply, and interest rates are raised. , the stock price usually falls.
A surplus in the international balance of payments will stimulate the country's economic growth, which will cause the stock price to rise; when a huge deficit occurs, it will cause the country's currency to depreciate, and the stock price will generally fall.
Political factors
National policy adjustments or changes, changes in leaders, frequent international politics, transfers of national power that play a more important role in the international arena, wars between countries, some Labor disputes and even strikes in the country often lead to stock price fluctuations.
The company's own factors
The value of the stock itself is the most basic factor that determines the stock price, which mainly depends on the operating performance, credit level and the accompanying dividend payment status of the issuing company. , development prospects, expected stock return levels, etc.
Industry factors
Changes in the status of the industry in the national economy, the development prospects and potential of the industry, the impact of emerging industries, etc., as well as the position of listed companies in the industry Position, operating performance, operating conditions, changes in capital mix and changes in leadership personnel will all affect the price of related stocks.
Market factors
Investor trends, intentions and manipulations of large investors, cooperation or mutual shareholdings between companies, increases and decreases in credit transactions and futures transactions, and arbitrage behavior of speculators , the company's capital increase method and capital increase amount, etc., may have a greater impact on the stock price.
Psychological factors
Investors’ psychological state changes after being affected by various aspects, which often leads to mood swings, errors in judgment, blindly following big investors, and crazy buying and selling behaviors. It is often an important factor that causes stock prices to plummet and rise sharply.
Risk disclosure: This information does not constitute any investment advice. Investors should not use such information to replace their independent judgment or make decisions solely based on such information. It does not constitute any buying or selling operation and does not guarantee any returns. If you operate by yourself, please pay attention to position control and risk control.