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Cloud economy and its relationship with China’s economy—a capital market-based approach

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Listed:
  • Lichao Lin

    (City University of Macau)

  • Adrian Cheung

    (City University of Macau)

Abstract

Through the lens of the stock market, we examine whether and how the cloud economy affects China’s economy. We review the literature on cloud computing and related concepts and propose a definition of the cloud economy. Based on this new definition, we create a China Cloud Economy Index (CCEI) and its sub-indices. Using stock market data from 2012 to 2020, we analyze the basic characteristics of these indices, their validity, and their relationship with the overall stock market. The robustness of the new index is also examined. We find that the relationship between the CCEI and the stock market had been getting stronger but weakened somewhat after January 11, 2019 plausibly because of the availability of recent cloud-related policies that have widened the gap between the market performance of CCEI and that of the stock market.

Suggested Citation

  • Lichao Lin & Adrian Cheung, 2022. "Cloud economy and its relationship with China’s economy—a capital market-based approach," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 8(1), pages 1-22, December.
    • Handle: RePEc:spr:fininn:v:8:y:2022:i:1:d:10.1186_s40854-022-00350-9
    DOI: 10.1186/s40854-022-00350-9
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    References listed on IDEAS

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    More about this item

    Keywords

    Cloud economy; Cloud index; Stock market; China;
    All these keywords.

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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