Bioevolutionary Approaches to Stabilizing Financial Market Volatility: Strategic Implications for Biotechnology Innovation and Investment

Shuizhu Zheng
College of Finance, Fujian Jiangxia University, Fuzhou, Fujian, 350000, China

DOI:https://doi.org/10.5912/jcb2038

Abstract:

This study explores the application of bio evolutionary theory to stabilize financial market volatility, emphasizing its strategic significance for biotechnology commercialization and investment. By integrating principles of biological evolution—heredity, mutation, and selection—with financial economics, the paper introduces the concept of evolutionary finance to analyse the underlying mechanisms driving financial market fluctuations. Empirical analyses of foreign exchange markets, stock market volatility, and futures markets are conducted using the framework of financial evolution. The findings reveal that the prediction error of market volatility remains within a stable range of -0.005 to 0.015, while the SSE Composite Index returns fluctuate steadily between -3.5 and 3.5, with extreme deviations ranging from 0 to 4. These fluctuations exhibit nonlinear and asymmetric characteristics under the evolutionary mechanism. Based on these insights, the study proposes stabilization policies focused on enhancing micro and macro coordination, advancing institutional reforms, and strengthening financial system construction. The research underscores the potential of leveraging evolutionary finance principles to optimize financial strategies in the biotechnology sector, facilitating resilient investment environments and sustainable commercial growth.