IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v340y2025ics0360544225047681.html

Official media sentiments toward energy and equity returns: Evidence from China

Author

Listed:
  • Hua, Xia
  • Dong, Dairui
  • Xu, Zhiwei
  • Huang, Wentao

Abstract

In this study, we constructs a set of novel sentiment indices derived from energy-related articles published by leading official media outlets in China using multiple machine learning techniques. Our results show that these official media sentiment indices consistently and significantly predict returns of both the China Securities Index (CSI) Energy Index and the Energy Exchange-Traded Fund (ETF). Furthermore, we find that official media sentiment conveys fundamental energy-related information not yet reflected in asset prices. Based on these return patterns, we design several trading strategies and show that they generate substantial economic value for both equity-focused and mean-variance investors. Overall, the findings underscore the influential role of official media as a channel for government and policymakers voices in shaping equity returns in China's energy sector.

Suggested Citation

  • Hua, Xia & Dong, Dairui & Xu, Zhiwei & Huang, Wentao, 2025. "Official media sentiments toward energy and equity returns: Evidence from China," Energy, Elsevier, vol. 340(C).
    • Handle: RePEc:eee:energy:v:340:y:2025:i:c:s0360544225047681
    DOI: 10.1016/j.energy.2025.139126
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544225047681
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2025.139126?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:energy:v:340:y:2025:i:c:s0360544225047681. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.