Linear Regression Analysis of Stock Price Dynamics in China’s Alcohol Industry

Abstract

This paper investigates the stock price dynamics of China’s alcohol industry, with a particular focus on Maotai’s stock performance during the COVID-19 pandemic. The multiple linear regression models to analyze 441 groups of data from 2018 to 2024 show the impact of six economic factors-National Housing Prosperity Index, Retail Sales of Consumer Goods, Insurance Asset Management Registration Size, Public Finance Revenue, Consumer Price Index (CPI), and Keqiang’s Index-on Maotai’s earnings per share (EPS). The results indicate a strong positive correlation between the National Housing Prosperity Index and EPS. A key finding was the pandemic-induced shift in consumer behavior, favoring stable investments in high-end liquor like Maotai over real estate. Maotai’s role as a status symbol in Chinese society also increased demand, further driving its stock price growth. Overall, these predictions provide valuable guidance for investors seeking to understand market shifts in the alcohol industry and underscore the relevance of macroeconomic indicators in stock performance analysis.