The Quantitative Relation between Stock Prices and Quantities of Tradable Stock Shares and its Applications

Abstract

This paper analyzes the quantitative relations between stock prices and quantities of tradable stock shares in Chinese stock markets at six time points by means of Exploratory Data Analysis (EDA) method. It is found the resulting formulae have the same structure but different parameters. This paper also uses these relationships to analyse the feasibility of policies for Chinese Government to sell the state-owned shares in Chinese stock markets.

Keywords: Chinese stock market, stock prices, Exploratory Data Analysis, tradable stock shares, state-owned shares

JEL Classification: G12, G15