THE INFLUENCE OF MACROECONOMICS FACTOR TOWARDS PROFITABILITY

Abstract

This research aimed to examine the determinants of the profitability of RMB in China between 2012 and 2018 and some specific technical analysis. The data used in this study comes from China Eastern Fortune Network and China National Data Network. By using panel data and spss to quantitatively detect and analyze this research, it is concluded that interest rate, exchange rate,gross domestic product and money supply have an impact on RMB earnings of 48.1%,The remaining 51.9% is due to factors not studied in the study. In terms of variables, exchange rate and GDP have negative impact on RMB earnings, The negative impact of the exchange rate on the profit of RMB relative to GDP is relatively obvious. Although the negative impact of GDP on RMB is relatively insignificant,The impact interest rates and money supply have a positive impact on the profitability of the RMB,The positive impact of interest rates on RMB is less obvious than money supply, and the positive impact of money supply on RMB is very small.