Research on the Fluctuation Factors of the Stock Market: Taking China's A-share Stock Market as an Example

The recent surge in China’s A-share market has drawn widespread attention, with the Shanghai Composite Index surpassing 3800 points and remaining stable without a decline. The total market capitalization has exceeded 100 trillion RMB. This paper explores the complex interplay of global and domestic factors that influence the A-share market, from global monetary policies and capital flow to domestic structural reforms and investor sentiment. The aim is to provide a comprehensive analysis of the reasons for stock price changes by considering multiple factors. Research shows that global monetary policy such as US monetary policy, geopolitical tensions and international capital flows works together with China’s monetary policies, investor sentiment and household wealth reallocation lead to the volatility in the A-share market. Although a substantial increase happens in short run, the risks still exist. This study believes that the Long-term sustainability of A-share market requires the balance between pressure from external factors and Internal policy or regulation.