Simple Differential Equations of A & H Stock Prices and Application to Analysis of Equilibrium State

Tian-Quan Yun, Tao Yun

China Construction Bank Guangdong Branch, Guangzhou, China.
Department of Mechanics, School of Civil Engineering and Transportation, South China University of Technology, Guangzhou, China.

DOI: 10.4236/ti.2010.12013                

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.

Keywords

A & H Stock Markets, Differential Equation, G-Contraction Mapping, Equilibrium State, Stock Value

Conflicts of Interest

The authors declare no conflicts of interest.

References

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