Reaction of US and Chinese Stock Markets to COVID-19 News

Hock-Ann Lee and Venus Khim-Sen Liew and Mohd Fahmi Ghazali and Samina Riaz (2023) Reaction of US and Chinese Stock Markets to COVID-19 News. Int. J. Financial Stud, 11. pp. 1-13.

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Abstract

The COVID-19 outbreak slowed down global economic activities substantially, resulting in unrest in the financial markets, especially in the beginning of the pandemic outbreak. This study aims to investigate if COVID-19 caused abnormal returns in the US and the Chinese stock markets in the beginning of the pandemic outbreak. Event study methodology is adopted for this purpose. This study finds that a significant negative impact appeared immediately after the Wuhan lockdown in the Chinese markets, while the US markets were slow to pick up. The former was more severely hurt after lockdown, while the latter was more brutally affected after COVID-19 was labeled a global threat. COVID-19 also played a significant role in connecting these two stock markets. The US and China should collaborate further in combating this novel and notorious global pandemic.

Item Type:	Article
Keyword:	novel coronavirus ; COVID-19 pandemic ; stock market ; abnormal returns ; event study
Subjects:	H Social Sciences > HG Finance > HG1-9999 Finance > HG4501-6051 Investment, capital formation, speculation > HG4900-5993 By region or country R Medicine > RA Public aspects of medicine > RA1-1270 Public aspects of medicine > RA421-790.95 Public health. Hygiene. Preventive medicine > RA643-645 Disease (Communicable and noninfectious) and public health
Department:	FACULTY > Labuan Faculty of International Finance
Depositing User:	ABDULLAH BIN SABUDIN -
Date Deposited:	11 Sep 2023 12:32
Last Modified:	11 Sep 2023 12:32
URI:	https://eprints.ums.edu.my/id/eprint/36762

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