Proceedings of the International Conference on Financial Innovation, FinTech and Information Technology, FFIT 2022, October 28-30, 2022, Shenzhen, China

Research Article

The Influence of Currency Exchange Rate Fluctuations on China’s Medical Stock Market

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  • @INPROCEEDINGS{10.4108/eai.28-10-2022.2328417,
        author={Xingyao  Song},
        title={The Influence of Currency Exchange Rate Fluctuations on China’s Medical Stock Market},
        proceedings={Proceedings of the International Conference on Financial Innovation, FinTech and Information Technology, FFIT 2022, October 28-30, 2022, Shenzhen, China},
        publisher={EAI},
        proceedings_a={FFIT},
        year={2023},
        month={4},
        keywords={covid-19; chinese medical stock; chinese exchange rate; mudell fleming model},
        doi={10.4108/eai.28-10-2022.2328417}
    }
    
  • Xingyao Song
    Year: 2023
    The Influence of Currency Exchange Rate Fluctuations on China’s Medical Stock Market
    FFIT
    EAI
    DOI: 10.4108/eai.28-10-2022.2328417
Xingyao Song1,*
  • 1: The University of Sydney
*Contact email: songxingyao980116@163.com

Abstract

After the COVID-19 in 2020, the development of medical stocks has been expected. At the same time, the continuous impact of the epidemic will affect the change of Chinese exchange rate. The impact of exchange rate on the change of Chinese medical stock price is usually negative, and this impact also occurs immediately. For investors, it is necessary to choose a suitable medical stock to resist the change of exchange rate. This paper mainly describes the impact of RMB's exchange rate on the US dollar on China's medical market in the year (2021) after the outbreak of COVID-19. Through ADF test and correlation coefficient, this paper analyzes the changes of capital return and exchange rate of China's medical industry, explores the Mudell-Fleming Model to see the impact of the unique reform trend of China's exchange rate and the regulation mode of the central bank on China's medical market. The paper finds that the RMB will appreciate against the US dollar in 21 years. Medical stocks with large assets will be more stable than the overall medical commercial market in 2021, which means that medical enterprises with relatively large investment will avoid risks in the West. The floating rate of exchange rate has a negative impact on the return of medical stock, although this impact is relatively stable.