Analysis of the Changing Trend of Noise Trader Risk in Chinese Stock Market under the Influence of Covid-19

Abstract

The outbreak of COVID-19 in 2019 has brought huge conflicts to the development of the world economy. As one of the countries affected by the epidemic, China has suffered huge economic losses. At the same time, the follow-up impact of this epidemic is continuous, has not disappeared in the short term and has a large scope. Based on existing research results, this paper analyzes Noise Trader Risk (NTR) and analyzes the factors that are positively related to it, and attempts to prove whether NTR is affected by COVID-19. The research results show that the degree of information asymmetry, market stability, investor sentiment, and turnover rate are all affected to varying degrees by the epidemic, which will lead to an increase in NTR. The research in this paper can provide theoretical reference value for scholars who study the relationship between NTR and COVID-19 in the future. This study has important practical significance for the development of financial markets in the post-epidemic era.