The Impact of COVID-19 on Chinese Stock Market in Two Outbreak Periods

Abstract

AbstractThe outbreak of the COVID-19 pandemic has had significant impacts on many aspects of society. The pandemic not only poses threat to public health but also causes emergence of the medical resources. From the information published by the media, we can suspect that COVID-19 also has negative impacts on the global economy when it is spreading. To figure out the impact of COVID-19 on China, this paper studies the influence on the Chinese stock market and stocks of different industries. Using data of share price in the two outbreak period of COVID-19, this work targets the different impacts during the two-period and in different industries. Analyzing the correlation between data from the stock market and the data of COVID-19 published by the National Health and Family Planning Commission of the People’s Republic of China, this work concludes that the outbreak of pandemic has significant negative impacts in the initial outbreak period but do not have obvious impacts on the subsequent period. In addition, the impact on different industries is not the same due to the nonconformity of the nature of the industry.KeywordsCOVID-19Chinese stock marketDaily return