IDEAS home Printed from https://ideas.repec.org/a/hin/complx/6917527.html
   My bibliography  Save this article

Chinese Stock Market’s Reaction to COVID-19 in the Short and Long Run

Author

Listed:
  • Hongxia Wang
  • Zongzheng Yu
  • Qingyuan Zhu

Abstract

We study the impact of COVID-19 on Chinese stock market which can be seen as a complex system. We use the event study method to evaluate its performance change in terms of the return rate, turnover rate, etc. We show that the abnormal return of stock market was significantly negative after the outbreak of COVID-19 and did not turn positive until May 2020. Moreover, the five-factor model is used to estimate the ordinary returns of different industries and show that abnormal returns for medical and food industries were significantly positive, while energy and public utility industries had significantly negative abnormal returns which persisted for a long time. COVID-19 had lag effects on clothes industry, finance industry, transportation industry, and IT industry. We also find that energy and finance industries had negative abnormal turnover rates during the sample period, while other industries, such as healthcare and telecommunications service industries, had positive abnormal turnover rates.

Suggested Citation

  • Hongxia Wang & Zongzheng Yu & Qingyuan Zhu, 2022. "Chinese Stock Market’s Reaction to COVID-19 in the Short and Long Run," Complexity, Hindawi, vol. 2022, pages 1-18, February.
    • Handle: RePEc:hin:complx:6917527
    DOI: 10.1155/2022/6917527
    as

    Download full text from publisher

    File URL: http://downloads.hindawi.com/journals/complexity/2022/6917527.pdf
    Download Restriction: no
    File URL: http://downloads.hindawi.com/journals/complexity/2022/6917527.xml
    Download Restriction: no
    File URL: https://libkey.io/10.1155/2022/6917527?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
    ---><---

    More about this item

    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:hin:complx:6917527. 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: Mohamed Abdelhakeem (email available below). General contact details of provider: https://www.hindawi.com .

    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.