Analysis of Impact of COVID-19 on Chinese Economy—A Case Study of Li Ning

Abstract

AbstractThis essay studies the impact of COVID-19 on Chinese economy through analyzing Chinese financial performances and the case of a business called Li Ning. However, it is also important to study the extent of the impacts to Chinese economy during specific periods which are the time before the pandemic, start of the pandemic and middle time of the pandemic. In order to reflect the macro-economic and financial performances of China, one macro financial market and one specific business are both used for analyzing. Shanghai Stock Exchange Market is chosen as the macro financial market and therefore SSEC is used for macro analysis. The daily return of Li Ning is analyzed, and Li Ning’s stock market performances are compared between before and the other two periods, and the result of stock market analysis shows an opposite situation to that of Chinese macroeconomy. Therefore, the fiscal report of Li Ning is further processed and analyzed to interpret the successful business strategies of Li Ning during the COVID-19. Additionally, the daily return of SSEC is also analyzed and concluded. To make the discovery and conclusion more accurate and convincible, hypothesis test is applied to help prove whether there is difference of daily return between before and the other two periods of both Li Ning and SSEC. The result found by this study is useful for business to use for reference that how to cope with inevitable disasters to avoid loss and important for other governments to learn experience from.KeywordsCOVID-19Financial marketsEconomic indicatorsBusinessSSECLi Ning