Abstract
Stock markets are so sensitive that they respond to occurrences rapidly. In this paper, we examine the relationship between the Covid-19 pandemic and dynamics in the stock market of China. This paper analyzes the data between the daily increase of the confirmed cases of Covid-19 in China and worldwide and representative indices of China’s stock market. We apply the unit root test to check the variables’ stationary state. We also develop VAR and ARMA-GARCH models to analyze the dynamic relation. Based on the empirical results, we conclude that the Covid-19 pandemic does not have a significant influence on the return of China’s financial market in the long term. China’s financial market has some degree of resilience. But China and the world's new Covid-19 case growth rate has a significant impact on China’s stock market volatility.
Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
