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Simple Differential Equations of A & H Stock Prices and Application to Analysis of Equilibrium State
Department of Mechanics, School of Civil Engineering and Transportation, South China University of Technology, Guangzhou, China
China Construction Bank Guangdong Branch, Guangzhou, China
- 1 Department of Mechanics, School of Civil Engineering and Transportation, South China University of Technology, Guangzhou, China
- 2 China Construction Bank Guangdong Branch, Guangzhou, China
Technology and Investment·Volume 01 (2010)·Pages 110–113·Published 25 May 2010·DOI10.4236/ti.2010.12013
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Abstract
Similar to the simplest differential equation of stock price, a set of simultaneous differential equations of stock prices of the same share in both A and H stock markets have been established. This is a set of simultaneous nonlinear differential equations, which can be solved by iteration method via a proof by g-contraction mapping theorem. Further more, the exact solution for equilibrium state and an example of checking the price prediction of “China Petroleum” (601857) at a conference held in May 2008 are given.
KeywordsA &H Stock MarketsDifferential EquationG-Contraction MappingEquilibrium StateStock Value
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