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The resilience dynamics of energy ETF accessibility and stock market sentiment in China during the post-pandemic era

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  • Yin, Hua-Tang
  • Wen, Jun
  • Yang, Hongming
  • He, Yushuang
  • Chang, Chun-Ping

Abstract

This paper investigates the dynamic interaction between energy ETF accessibility and stock market sentiment through the lens of resilience during the post COVID-19 pandemic period. We find that they tend to positively co-move in the long run. Adverse exogenous shocks on one of them not only have a persistent impact on itself but also cause non-diminish damage to the other. Compared to stock market sentiment resilience, energy ETF accessibility resilience is more constrained by the long-run co-movement. The co-movement is not significantly reshaped by possible structural time-breaks or Markovian regime shifts. Further exploration based on wavelet coherence analysis provides evidence for a stable and even gradually strengthening positive coherence between the two types of resilience in a volatile environment. Accordingly, our findings can offer valuable insights for financial regulators to achieve their designed objectives in the secondary markets of energy and stocks.

Suggested Citation

  • Yin, Hua-Tang & Wen, Jun & Yang, Hongming & He, Yushuang & Chang, Chun-Ping, 2025. "The resilience dynamics of energy ETF accessibility and stock market sentiment in China during the post-pandemic era," Energy Economics, Elsevier, vol. 141(C).
    • Handle: RePEc:eee:eneeco:v:141:y:2025:i:c:s0140988324007692
    DOI: 10.1016/j.eneco.2024.108060
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    More about this item

    Keywords

    Energy ETF; Stock market sentiment; Resilience; Cointegration; Exogenous shock; Regime shift;
    All these keywords.

    JEL classification:

    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • G20 - Financial Economics - - Financial Institutions and Services - - - General

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