Proceedings of the 2nd International Conference on Financial Technology and Business Analysis
Javier Cifuentes-Faura, University of Murcia
Faced with the convenience of the internet, people begin to rely more on the broad internet and the leisure it brings, allows people to transcend the limitations of time and space, experience and share exciting cultural, sports, artistic and other activities from around the world together. Network broadcasting has blossomed in recent years, from the earlier game broadcast, singing, and dancing to recent years where every event – no matter how big or small – has the chance to be broadcasted. Following the sudden outbreak of COVID-19, live streaming has been integrated into almost every person’s lives. With the increasing popularization of an online lifestyle, live broadcasting has gradually integrated into everyone’s life. Through research and analysis, this paper aims to probe into the impacts and problems of the live-streaming industry, exploring its development since the pandemic and analyzing its main competitors and its future.
The twenty-first century has seen significant shifts in fertility attitudes and demographics, leading to an aging global workforce. This paper explores how different regions - the United States, Western Europe, Japan, and China - address the challenges and opportunities posed by their aging populations in terms of healthcare, social security, and employment. The main findings reveal diverse strategies. The United States combines public and private healthcare components through Medicare and private insurance. Western Europe emphasizes publicly funded healthcare, exemplified by the UK’s NHS and Germany’s multi-layered pension system. Japan’s universal coverage and pioneering Long-Term Care Insurance stand out, while China adapts healthcare for both urban and rural elderly residents. Social security systems range from Germany’s multi-faceted pensions to Japan’s comprehensive structure, and China is working to bridge urban-rural disparities. Employment trends vary, with the United States witnessing older adults extending work lives, the Netherlands introducing innovative retirement schemes, Japan promoting “active aging,” and China focusing on skill enhancement. The study suggests cross-country learning and adaptation. Each nation can benefit from the best practices of others to enhance its own strategies. Collaborative approaches can drive innovative solutions for aging populations, fostering resilient healthcare systems, inclusive social security, and age-friendly employment environments. This comparative analysis offers insights for creating a harmonious and sustainable future for aging populations globally.
The bubble burst, and the South Korean property market plummeted. Thousands of Koreans should not be able to afford their debts and choose to commit suicide. Prior to this, South Korea’s real estate market soared rapidly, and no one noticed the abnormality and the future direction of the real estate market. That was a miracle, but it only lasted for a while, and one of the most important factors that accelerated its destruction was a rental system called Jeonse. The purpose of this paper is to explore the impact of Jeonse, a unique rental system, on the Korean real estate market. Housing prices in South Korea have soared amidst the global pandemic. By studying macroeconomics, the global capital chain, and policy-related factors that affect the market, it seems necessary for the government to understand the importance of controlling leverage and properly using quantitative easing. Those methods can theoretically prevent the economic crisis, slow down the creation of bubbles, or decrease the influence made by the contagions it creates.
The research background of this paper is the continuous development of modern science and technology, the continuous popularization of the Internet links people in various regions, and people who have more knowledge in each field gradually gain a lot of fans on the Internet, and their comments are also recognized by more people. These people are called opinion leaders. However, the value and influence that opinion leaders can bring are gradually expanding and affecting our lives. The goal of this paper is to find out the influence and value that opinion leaders can bring to different objects such as society, individuals and companies. The main research content is what kind of value can opinion leaders create and promote the development of public opinion by using their high appeal and credibility on the Internet. And that affects the economy and politics and different aspects of the whole country. The influence of opinion leaders is huge and can bring a lot of value, but whether ordinary people can distinguish the truth and falsehoods of opinion leaders’ speeches is very important. The independent thinking of ordinary people should not be obliterated by the big trends on the Internet.
The rapid withdrawal in the financial market due to the collapse of Silicon Valley Banks in 2023 brought reflections on the 2008 financial crisis. Past research has focused on modeling different types of financial networks that help explain bankruptcy’s contagion process. This paper discusses how these networks help to explain the 2008 financial crisis, followed by shedding light on the global impacts (European, Latin American, and Asian markets) of the crisis in terms of networks. The last section further discusses potential policies that could be used to prevent or predict severe contagion depending on different network structures, including adjusting the level of portfolio diversification for international investment, for example. This paper sheds light on the importance of financial networks regarding their contagion channel and wide application in the real economy.
On March 16, 2022, the U.S. raised interest rates for the first time in response to inflationary pressures, which announced a 25-basis point increase. After the latter four rate hikes happened in May, July, September and November, the cumulative increased total is 425 basis points. This change had a huge impact, especially on the exchange rate between the US dollar and the Chinese currency. This paper uses data on the exchange rate of the US dollar to the Chinese yuan after 2010, and ARIMA model is built to model and analyze the data in order to study the impact of the Federal Reserve’s interest rate hike on the exchange rate of dollar and yuan. Therefore, the analysis discovered that the Fed’s interest rate increase caused the appreciation of the USD and the depreciation of the CNY. Furthermore, the model helps to predict the trend of the future exchange rate, which in turn will provide suggestions for China’s future development.
The real estate sector, which plays a significant role in land financing and is a foundational sector of the Chinese economy, is very important. By primarily examining data from the China Statistics Bureau, the China Statistical Yearbook, and real estate-related statistics, this paper examines the present growth pattern of China’s real estate business and highlights possible concerns in the current real estate industry. The real estate market is clearly in a downturn right now, but there are also hidden risks of overinvestment that might undermine the stability of the financial system. This is what this paper’s data investigation reveals. As a result, the economic growth model that relies heavily on land financing cannot continue, and appropriate regulatory changes are needed to lower the risks associated with potential hidden hazards in real estate. Finally, it is recommended that the government carefully regulate the real estate market and, in the future, promote high-tech companies and financial industries to lessen the country’s reliance on land financing.
Optimal investment portfolio is beneficial for investors to make decisions and construct investment strategy. This paper uses effective frontier methods to build an investment portfolio. This study selects 8 different companies from the USA, which are AMD, MRVL, LRCX, QCOM, INTC, AVGO, and TXN, and collects the data to optimize investment portfolio. The study finds that the optimal portfolio point is (0.1407, 0.0506), the risk is 0.1407, and the return is 0.0506. In this case, for AMD, MRVL, NVIDA, LRCX, INTC, QCOM, AVGO, and TXN, the weights for each company are 0.0502, -0.3867, 0.5289, 0.4367, -0.9987, -0.2805, 1, and 0.6501, respectively. The study allows for short selling and buy mechanisms, since a negative number is actually equivalent to a short sale. As a result, the study has an optimal portfolio that enables investors to make optimal investment decisions for the company the study choose. Through this research, it can help people to increase their life quality, because investment can help with more finance in the daily life, which can let people consume a better goods.
Systemic financial risk has always been a topic of concern to financial regulators and investors, and it often has a profound impact on the securities market. In 2015, China’s stock market fluctuated dramatically from a bull market to a bear market. The sharp drop in June of that year was an important turning point, resulting in a huge systemic financial risk, which led to a subsequent bear market. This paper uses ARIMA model to study the expected trend of the Shanghai Composite Index after the occurrence of systemic risk. Daily, weekly, and monthly data are used to analyze separately, and compared with the actual trend in order to study the impact of systemic financial risk on the Shanghai Composite Index. The study finds that systemic financial risk has a significant negative effect on the Shanghai Composite Index. The research in this paper aims to provide investors with a cognition and explanation of systemic financial risk, and to propose policy recommendations.
In a rapidly globalizing world economy, international trade is undergoing unprecedented growth, marked by technological advancements, energy demand, and currency fluctuations. This study explores the intricate interplay between trade networks and international commerce. As the global economy transforms, this research sheds light on key trends and characteristics shaping the international trade landscape. Through an extensive review of relevant literature, this paper investigates the role of trade networks in international trade dynamics. It delves into the significance of network structures and their impact on trade patterns, revealing insights about the core-periphery structure where advanced economies dominate while others form the periphery. The study focuses on the international trade network's features, including its virtualization, globalization, and intelligent attributes. It examines how businesses adapt to digitalization, interact through virtual platforms, and embrace the knowledge-driven nature of modern trade networks. Additionally, the research explores the implications of trade networks for enterprises, emphasizing market penetration, supply chain efficiency, brand influence, technological innovation, and resource integration. The study highlights the works of various scholars who have analyzed international trade networks. Research findings underscore the importance of understanding network structures, role centrality, and the impact of digitalization on global trade. By analyzing the evolution of trade networks and their implications for different economies, this study offers valuable insights for policymakers and businesses navigating the complex landscape of international trade. Overall, this thesis contributes to a comprehensive understanding of the relationship between international trade and network structures, paving the way for more informed decisions in a rapidly changing global trade environment.
Every stock trader wants to successfully predict the price or trend of a stock in order to make a profit because stock price forecasts provide investors, traders, and financial professionals with signals about potential price movements, which can help them make more informed decisions about buying, selling, or holding stocks. This article selects the four largest stocks in the U.S. stock market by market capitalization: Google, Apple, Microsoft, and Amazon, and predicts their closing prices from 2013 to 2023. First, K-Nearest Neighbors (KNN) model is established for the closing price sequence after the first-order difference. Then a two-layer LSTM model is constructed to visualize the prediction results of the two models, and RMSE is calculated respectively. Comparing the prediction results of the two models, LSTM has a better prediction effect on the data set used in this paper. This paper finds that the LSTM model can capture the crucial time dependencies and relationships in financial time series data, which are essential for stock price prediction. Therefore, the LSTM model can often be used when predicting stocks in the future.
As the impacts of environmental pollution and climate change on humanity have become increasingly severe, achieving sustainable development has heightened global concerns in recent years. An increasing number of companies have recognized the importance of corporate social responsibility (CSR) and are actively investing in enhancing their performance. Moreover, an increasing number of investors are considering social factors when making investment decisions. Although the potential impact of CSR on corporate financial performance (CFP) is a growing interest in related research filed, there still needs to be consensus on their relationship. This study seeks to address this gap in the context of the Chinese energy sector. By conducting fixed effect panel regression on the CSR scores, accounting financial indicators, and fundamental panel data of 876 listed companies in the Chinese energy sector over the past decade, this paper reveals a nonlinear positive impact of CSR on CFP. Further threshold regression is applied to identify distinct threshold values that affect different financial indicators. The findings of this paper complement the existing related research and provide valuable support and guidance for companies in the energy sector to undertake social responsibility and engage in social responsibility investments effectively.
To find out the relationship between psychology and economics, many people try to study the reasons that lead people to make choices. This paper aims to explain the influence of the “anchoring effect” in behavioural economics on consumption, investment, and food intake. Through reading the previous literature review and the experiments, and based on the definition of the anchoring effect in Thinking Fast and Slow by Daniel Kahneman, three real-life applications of the anchoring effect were identified. In the anchoring effect in consumption, investment, and food intake, the anchoring price is proportional to people’s price estimates. Anchors can be divided into high anchor conditions and low anchor conditions in those cases. However, possible biases in some of the experiments mentioned in some of the citations and related solutions are also mentioned. In a complete decision-making process, people’s choices will be influenced by multiple anchors, and those anchors are always related to each other.
With the development of the capital market, Mergers and Acquisitions has become an important way to enhance market competitiveness. As the most popular dairy industry in China, Bright Food tries to expand its scale through M&A with GNC Corporation. The Bright Food uses their specific method and characteristics to M&A the GNC. Although it ended in failure, we can still learn a lot from this event business. Based on this situation, this article will use the case study method to analyze the theory behind mergers and acquisitions. It will also focus on the reasons why Bright Food failed in M&A. It will, from the financial angle and industry angle, conduct an in-depth analysis and put forward the corresponding countermeasures and suggestions. The final result is that Bright Food has failed on M&A at GNC. The main reasons that caused failure were poor financial capacity and a slow speed to make a decision, as well as a lack of international recognition. In order to countermeasure the problem that caused the failure of M&A, the GNC can borrow from the bank to expand their financial capacity and do more advertising abroad to increase their international recognition.
The stock market in China has an important position in the world, but it has not been able to find a pricing model suitable for the market. This paper reviews the history and development of various pricing models, analyzes relevant research on their application in the Chinese stock market, and discusses the applicability of various pricing models. It is found that the applicability of the capital asset pricing model (CAPM) in China is low; the applicability of the Fama-French three-factor model and the Fama-French five-factor model is better than CAPM, but there is significant controversy over the advantages and disadvantages of the two. It is also found that the applicability of the five-factor model may have regional differences in different markets, and there may be differences in redundant factors in different markets. It is proposed that future research should obtain more accurate market data, explore new influencing factors, and build a pricing model more suitable for the stock market in China by combining the characteristics based on more advanced data analysis technology.
In recent years, the market economy has declined due to the impact of COVID-19. Whether the person is a consumer or an investor, they both want to get more out of it. However, people often may be blinded by this idea of quick success, and then lose a lot. Taking the Archegos liquidation event as an example, this article analyzes the risk management of financial derivatives and their effectiveness when the financial market fluctuates through case studies. Through analysis, it can know that when buying or investing in an aggressive investment company, it may bring them high returns and may also bring them huge risks. Because they obtain returns through some of the characteristics of financial derivatives, it is very risky. The impact of this event on Nomura was analyzed by using the method of event research. Furthermore, through this incident, it found some loopholes and problems in financial management and gave rationalization suggestions.
China has promulgated a series of policies on trade, immigration, and culture, which will undoubtedly greatly impact Chinese students preparing to study in the United States. This paper focuses on the influence of American policies and a series of chain reactions on Chinese students studying in the United States since the Sino-US trade war in 2018. It analyzes the factors that affect Chinese students’ decision to study in the United States. This paper conducted a quantitative study by issuing online questionnaires, and 323 valid questionnaires were received. The basic information, educational experience, and factors affecting the respondents’ going to the United States were investigated, and a series of statistical methods were applied to analyze them. Finally, the following conclusion is drawn: the Sino-US trade war greatly influences Chinese students’ decision on whether to go to the United States, mainly including the influence of visa and professional restrictions. The factors that affect Chinese students’ decision to study abroad are family and policy factors, teacher factors, and intermediary factors.
Gasoline is an important energy source in China, and the stability of its price lays the foundation for the country’s transportation and industrial development. Therefore, fluctuations in gasoline prices are directly related to the normal operation of the country’s transportation system and industrial production. Since 2020, during the COVID-19 outbreak, China’s gasoline prices have experienced huge abnormal fluctuations, which have affected the national economy. The purpose of this article is to study what factors have affected gasoline price fluctuations in China during the COVID-19 pandemic and how to solve the problem of excessive fluctuations. This article analyzes the fluctuation characteristics of gasoline prices in China from 2019 to 2023 and lists four factors that affected gasoline price fluctuations through qualitative research. For unexpected fluctuations like this, this article proposes two feasible suggestions, including formulating a stronger environmental protection policy and strengthening international cooperation based on oil exports to stabilize the price of gasoline.
In recent years, with the development of China’s economy and the policy encouragement of the Chinese government, more and more Chinese enterprises have participated in cross-border acquisitions and mergers and acquisitions. Studying the cases of cross-border mergers and acquisitions of large Chinese enterprises can help reveal the impact of similar mergers and acquisitions on the short-term stock price trend of enterprises and their financial indicators. This paper chooses Bright Dairy Food’s acquisition of Tnuva as the main body of the case study. By constructing the FAMA-French Three-Factor Model, this paper studies the short-term effect the acquisition activity exerted on the stock price of Bright Diary Food. By studying the financial indicators, this paper studies the influence of M&A activities on the profitability and debt-paying ability of Bright Dairy Food. The research shows that Bright Dairy’s decision to acquire Tnuva aroused widespread concern from shareholders, and shareholders were optimistic about this decision, so the abnormal return of Bright Dairy’s stock has increased in the short term. In addition, the acquisition of Tnuva has improved the profitability of Bright Dairy but reduced its debt-paying ability.
The digital revolution, characterized by widespread internet access and the burgeoning influence of social media, has heralded a new era of consumer engagement and transformed branding paradigms. Particularly impacted is the fashion domain, with brands navigating the tumultuous waters of dynamic trends and digital preferences. This paper delves into Zara’s foray into this intersection of fashion and digital marketing, illuminating its triumphs in social media marketing (SMM) and underexplored areas. Despite Zara’s commendable utilization of platforms such as Instagram, a glaring bidirectional communication gap needs to improve the establishment of authentic consumer connections. The advent of Generation Z accentuates this, introducing nuanced digital consumption behaviors that demand a revised SMM approach. Recommendations proffered include enriching content interactivity, fortifying influencer collaborations, and calibrating strategies tailored for Generation Z. Emphasizing the vitality of agility in branding, the study underscores the necessity for brands, even those at the pinnacle of their sectors, to perpetually evolve in harmony with the digital zeitgeist. Through a detailed exploration of Zara’s digital endeavors, this research offers an instructive lens on the intricacies of modern digital consumerism, charting a direction for the fashion industry in the age of pervasive digital connectivity.