Microsoft Word lina 's topic

1.2 Statement of Problems 
Although there are many studies found out that significant impact of economic 
factors on stock price, but less literatures indicate clearly that which macroeconomic 
variables are more relevant to be regarded as factors that significantly affecting the 
banking industry stock return and how these factors behave in influence the banking 
industry stock return. So the statement of problems in this study is to investigate the 
impact of macro-economic factors on banking industry stock return in emerging 
market such as Chinese stock market.
1.3 Research Objectives 
The research objectives are: 
1. To study the impact of interest rate on banking industry stock return in China. 
2. To study the impact of inflation rate on banking industry stock return in 
China. 
3. To study the impact of exchange rate on banking industry stock return in 
China.
4. To study the impact of money supply on banking industry stock return in 
China. 
1.4 Research Questions 
The research questions are: 
1. How does the interest rate impact on banking industry stock return in China?
2. How does the impact of inflation rate on banking industry stock return in 
China?
3. How does the impact of exchange rate on banking industry stock return in 
China? 
4. How does the impact of money supply on banking industry stock return in 
China? 

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1.5 Expected Benefits 
1. Useful for the investors to analyze the trend of stock prices, so that can 
increase the returns and reduce the investment risk. 
2. Useful for the policymakers pay attention to the situation of the stock market 
that can be regarded as a leading indicator of future macroeconomic activity. They can 
better control the stability of the stock market by using macroeconomic tools.