The Impact of International Oil Price Fluctuations on Chinas Stock Performance of Clean Energy Industry: Under the Russia-Ukraine Conflict

Abstract

Crude oil is an important component of the global energy market, and its price fluctuations have a huge impact on the economy and the environment. As a large oil consumer, China has a great demand for non-renewable resources such as crude oil. With the sustainable and stable development of China's economy, its dependence on imported crude oil is deepening, and the impact of international crude oil price fluctuations on China's energy industry is also gradually deepening. In addition, with the impact of epidemic, geopolitical, environmental crisis and financial crisis in recent years, the international crude oil price has produced drastic fluctuations, so the study of the relationship between the international crude oil futures price fluctuations and the stock prices of clean energy companies is of great significance for the development of new energy industry and domestic energy security. This paper applies the VAR model to examine the links between Brent crude oil index, WTI crude oil index and Chinas Clean Energy Theme Index (CET), and the ARMA-GARCHX model to investigate the impact of international oil price on Chinas clean energy market after the Russia-Ukraine conflict. The empirical results show that international crude oil price fluctuation has a short-term alternating impact on Chinas clean energy theme index yield and provides useful insights to investors.