Effects of some of the macroeconomics factors on the stock price of Hengrui Pharmaceutical Company

This paper introduced and explored the background of Hengrui Pharmaceutical Company, then use PEST, Potter’s Five Forces Model and SWOT to analysis how Hengrui Pharmaceutical Company is doing in the macroeconomic environments, industrial environments and the competing advantages and disadvantages of itself. Then this paper use VECM model to see how and to what extend that exchange rate, unemployment rate, which is the main focus of this paper, inflation rate and 1 year deposit interest rate is affecting close price of Hengrui Pharmaceutical Company. Results are exchange rate is negatively related with close price in short run, and exchange rate USD/RMB, unemployment, core inflation and interest rate have negative influences on stock price in medium run.