Advanced Mathematical Analysis of ‘The Roller Conduction Effect’: Insights from Stock Market Data

Within the aftermath of the pandemic, patterns of consumption recovery exhibit distinct temporal and spatial dynamics, and various criteria evaluate different consumption sectors. Analyzing A-share data during the initial four months of 2022, this study in quantitative terms assesses the rotational shifts among different consumption sectors as their valuations approach rational levels. Through the innovative categorization termed "sensory-based consumption," the explanation is provided for digital consumption as a mechanism facilitating consumption enhancement and its link to elevated valuation targets, accompanied by examining the "echo transmission effect. "This paper explores the laws governing the period for consumption recovery and valuation normalization through the lens of spatial-temporal transmission. The findings reveal that consumer confidence rebounds slowly in the initial recovery phase. During this stage, A-shares were primarily influenced by stock capital manoeuvers, with a clear pattern of sector rotation evident. Understanding this pattern is crucial as it aids policymakers in refining policy direction and equips financial investors with insights for optimizing investment strategies. However, the limitation of this study lies in its exclusion of the ripple effects across the global financial markets and the need for more robust mathematical models to define better stock fund dynamics, which will be the primary focus of future research by the author.