Monetary Policy, Stock Price and Asymmetry in China: A Comparative Research Based on Econometrics and Artificial Intelligence Methods

However, the econometrics methods, which have traditionally demonstrated strong performance in addressing nearly all economic issues, exhibit limitations specifically in stock-related analyses-a gap that has only begun to be addressed with the emergence of artificial intelligence methods as cutting-edge applications in this field.

Building on this foundation, this study integrates theoretical economic frameworks with empirical methodologies across disciplines to undertake a comparative investigation into the impact of monetary policy on stock prices and its associated asymmetric effects in China. The findings reveal that econometric models (VAR and MS-VAR) yield only partially satisfactory results in analyzing this issue, whereas the artificial intelligence-driven LSTM model demonstrates good explanatory power.