IDEAS home Printed from https://ideas.repec.org/a/taf/hbhfxx/v26y2025i2p187-200.html
   My bibliography  Save this article

From Shanghai to Wall Street: The Influence of Chinese News Sentiment on US Stocks

Author

Listed:
  • Kingstone Nyakurukwa
  • Yudhvir Seetharam

Abstract

This study explores the influence of Chinese news sentiment on US stocks, focusing on the potential policy shift granting Chinese retail traders direct access to US markets. Analyzing the flow of information between Chinese news sentiment and global news sentiment using transfer entropy, the findings reveal a significant influence of Chinese news sentiment on global news sentiment. Moreover, the study identifies a predominant unidirectional flow of information from news sentiment to stock returns, with Chinese news sentiment having a more substantial impact on future returns of US stocks compared to global news sentiment. This suggests that if the proposed policy changes succeed, Chinese retail traders may rely on Chinese news sentiment, potentially leading to increased volatility in the US market. Policymakers and market participants should be aware of these implications to prepare for changes in the US stock market dynamics. Further research can provide deeper insights into the interplay between news sentiment, investor behavior, and market volatility.

Suggested Citation

  • Kingstone Nyakurukwa & Yudhvir Seetharam, 2025. "From Shanghai to Wall Street: The Influence of Chinese News Sentiment on US Stocks," Journal of Behavioral Finance, Taylor & Francis Journals, vol. 26(2), pages 187-200, April.
    • Handle: RePEc:taf:hbhfxx:v:26:y:2025:i:2:p:187-200
    DOI: 10.1080/15427560.2023.2270100
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/15427560.2023.2270100
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/15427560.2023.2270100?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 search for a different version of it.

    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:taf:hbhfxx:v:26:y:2025:i:2:p:187-200. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/hbhf .

    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.