Performance of Shanghai Composite Index and Sector Indices in The Beginning of Novel Coronavirus Pandemic
This paper aims to quantify the effect of the deadly novel coronavirus (COVID-19) pandemic outbreak on Chinese stock market performance. Shanghai Stock Exchange Composite Index and its component sector indices are examined in this study. The pandemic is represented by a lockdown dummy, new COVID-...
Saved in:
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | en |
| Published: |
Macrothink Institute
2021
|
| Subjects: | |
| Online Access: | http://ir.unimas.my/id/eprint/35491/1/PB.pdf http://ir.unimas.my/id/eprint/35491/ http://www.macrothink.org/journal/index.php/ajfa/article/view/18704/14529 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| Summary: | This paper aims to quantify the effect of the deadly novel coronavirus (COVID-19) pandemic
outbreak on Chinese stock market performance. Shanghai Stock Exchange Composite Index
and its component sector indices are examined in this study. The pandemic is represented by a
lockdown dummy, new COVID-19 cases and a dummy for 3 February 2020. First, descriptive
analysis is performed on these indices to compare their performances before and during the
lockdown period. Next, regression analysis with Exponential Generalized Autoregressive
Conditional Heteroscedasticity specification is estimated to quantify the pandemic effect on
the Chinese stock market. This paper finds that health care, information technology and
telecommunication services sectors were relatively more pandemic-resistant, while other
sectors were more severely hurt by the pandemic outbreak. The extent to which each sector
was affected by pandemic and sentiments in other financial and commodity markets were
reported in details in this paper. The findings of this paper are resourceful for investors to avoid
huge loss amid pandemic outburst and the China Securities Regulatory Commission in
handling future pandemic occurrence to cool down excessive market sentiments. |
|---|