The Impact of China’s Macroeconomic Indicators on the Scale of Private Equity Investment

DOI

10.2991/978-94-6239-801-6_13How to use a DOI?

Keywords

Private Equity Investment; Macroeconomic Indicators; Multiple Linear Regression

Abstract

This paper collects monthly data spanning 119 months from January 2016 to December 2025, employs a multiple linear regression model for empirical analysis, and ensures the rationality of model settings through correlation analysis and collinearity diagnosis. The research findings indicate: Firstly, there is a significant negative correlation between CPI and private equity scale, with an average decrease of 1.88 trillion yuan in private equity scale for every one percentage point increase in inflationary pressure. Secondly, Purchasing Managers’ Index (PMI) also exhibits a significant negative impact, indicating that private equity financing has countercyclical characteristics. Thirdly, trade balance and new credit expansion significantly positively promote the expansion of private equity scale. Fourthly, Producer Price Index (PPI) has an insignificant impact. Fifthly, M2 is eliminated due to multicollinearity issues with other variables. The adjusted R-squared of the model is 0.413, indicating good overall explanatory power. This study is the first to incorporate six major macroeconomic indicators into a unified analytical framework, revealing that inflation level and economic prosperity are core factors affecting private equity investment. It provides a quantitative basis for policymakers to optimize the macroeconomic environment and for investors to conduct asset allocation.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Shaoxuan Wang
PY  - 2026
DA  - 2026/10/23
TI  - The Impact of China’s Macroeconomic Indicators on the Scale of Private Equity Investment
BT  - Proceedings of the 2026 2nd International Conference on Financial Innovation and Marketing Management (FIMM 2026)
PB  - Atlantis Press
SP  - 110
EP  - 117
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-801-6_13
DO  - 10.2991/978-94-6239-801-6_13
ID  - Wang2026
ER  -