A Study on the Synergistic Change of Non-ferrous Metal Futures and Stock Prices in China—Based on the Complex System Synergy Degree

Abstract

Based on the synergetics perspective, this paper constructs a composite system of non-ferrous metal futures and stock prices, using MATLAB to analyze the data of 3405 trading days from 2004 to 2018 in China. The empirical results show that non-ferrous metal stock prices are generally more orderly than futures prices in the selected period; the price discovery function of aluminum futures is worse than that of copper and zinc; and the 2008 financial crisis has an indelible negative impact on the coordination of China's non-ferrous metals futures market. Finally, this paper discusses whether there are representative metals in the non-ferrous metal market, and makes a brief summary.

The asymmetric effect of temperature, exchange rate, metals, and investor sentiments on solar stock price performance in China: evidence from QARDL approach

“…The synergetic change of non-ferrous metal explains the stock market movements in China (Kong and Gou 2019). Empirical evidence shows that changes in the price of copper and aluminum influence the economic activities and volatility of Chinese financial markets (Guo 2018; Klein and Todorova 2021).…”

“…Thus, the inclusion of these metals into the empirical model shall increase the predictability of the Chinese solar stock market. Unlike Kong and Gou (2019), we have disaggregated the critical non-ferrous metals into best electrical conductors (copper, aluminum, and silver) and rare (cadmium, germanium, indium, and selenium) base metals. Accordingly, the comprehensive model to investigate the underlying variables is expressed in Eq.…”