International Journal of Scientific Engineering and Science Volume 4, Issue 3, pp. 51-56, 2020. ISSN (Online): 2456-7361 51 http://ijses.com/ All rights reserved Analysis of Macro-influencing Factors of Stock Price Index Song Nana School of Finance and Economics, Jiangsu University, Zhenjiang 212013, People’s Republic of China Abstract— As an important part of the financial market, the stock market is a leading indicator of macroeconomics. Changes in stock prices and trends are the focus of much attention in the capital market. Changes in macroeconomic factors have a great impact on the stability of the stock market and investors' investment strategies. In order to explore the main macroeconomic factors affecting the stock price index, the Shanghai Stock Index is used as the dependent variable in this paper. Ten representative macroeconomic indicators are selected. Firstly, make a correlation analysis between these indicators and the Shanghai Stock Exchange Index to screen out significantly related indicators; Secondly, use the SPSS software to perform multiple linear regression on the screened indicators and establish a regression model to obtain the main macroeconomic factors affecting the stock price index; Finally, corresponding policy recommendations are given for the macroeconomic factors affecting the stock price index. Keywords— Stock price index; Macro influence factors; Multiple linear regression model. I. INTRODUCTION As an important part of the financial market, the stock market not only undertakes the functions of capital intermediaries for financing and resource allocation, but also can predict macroeconomics through its performance [1] .The stock price index is a reference indicator prepared by a stock exchange or financial service institution to indicate changes in the stock market. It is an index describing the change in the total price level of the stock market. The stock price index is a relative indicator that dynamically reflects the total price level of the stock market in a certain period, and is also an important indicator for evaluating the development of the stock market. The operation of the macro economy determines the long-term trend of the securities market. Macroeconomic factors are also one of the important factors affecting the long-term trend of the securities market [2] . In the actual economic operation, the factors affecting the stock index are very complicated. Although there are many unpredictable factors in real life, and statistical models cannot predict the decline or increase of indicators with 100% accuracy, it can provide a basic forecasting trend [3] . If the quantitative analysis of the model and the qualitative analysis of the market can be combined, it will definitely make people have a more accurate understanding of the current and future stock market conditions. This will not only help stockholders better analyze the stock market to make relatively informed decisions, It can also help solve the problems in the operation of the national economy and make China's economy develop better [4]. In this paper, ten representative macroeconomic indicators are selected for correlation analysis and regression analysis. Macro factors that do not have significant correlation are eliminated, and macro influence factors that have a greater impact on China's stock price index are obtained. II. SETTING OF MACRO-INFLUENCING FACTORS OF STOCK PRICE INDEX 2.1 Determination of Influencing Factor Indicators The Shanghai Stock Exchange Index reflects the changes in the prices of listed securities in general and from different aspects. Taking the prices of all listed stocks as a sample, it has a broader representation and can reflect the situation of the entire stock market [5] . The Shanghai Composite Index was used as the dependent variable. In view of the fact that the Shanghai Stock Exchange Index can reflect the prosperity of different industries and the overall price changes [6] , and the Shanghai Stock Price Index has a strong correlation with the Shenzhen Stock Price Index, the trends of the KLCI of the two cities are very similar. As an explanatory variable, the Shenzhen Securities Index is no longer analyzed similarly. 2.2 Determination of Macro Factors Affecting Stock Index (1) Affect the choice of Shanghai Stock Index. This article selects ten economic variables that are relatively representative from many macro factors that affect the stock price index: national foreign exchange reserve (X1); exchange rate (X2); interest rate (baseline interest rate for deposits) (X3); reserve ratio(X4); Consumer Confidence Index (X5); Corporate Commodity Price Index (X6); Macroeconomic Prosperity Index (X7); Money Supply (X8); Shanghai Stock Exchange Total Market Value (X9); Urban Fixed Asset Investment (X10 ). (2) Collection and arrangement of sample data. The sample data used in this article are derived from relevant monthly statistical data of the National Bureau of Statistics of the People's Republic of China, the People's Bank of China, the Shanghai Stock Exchange, and the China Securities Regulatory Commission. III. THE WORKING PRINCIPLE OF RELATED MACRO FACTORS AFFECTING STOCK PRICE INDEX 3.1 National Foreign Exchange Reserve The increase in national foreign exchange reserves will increase imports to a certain extent, and the government will adopt a more correct repurchase policy to buy back bonds, so that people will have more idle funds. The entry of idle funds into the stock market will lead to an increase in stock market