Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)

The Impact of COVID-19 on Stock Market and China’s Economy

Authors
Jiexi Chen1, , *, Zijian Dong2, , *, d84037@st.takushoku-u.ac.jp
1London School of Economics and Political Science, London, WC2A 2AE, UK
2Faculty of Political Science and Economics, Takushoku University, Tokyo 112-8585, Japan

These authors contributed equally.

*Corresponding author. Email: J.Chen126@lse.ac.uk
Corresponding Authors
Jiexi Chen, Zijian Dongd84037@st.takushoku-u.ac.jp
Available Online 26 March 2022.
DOI
10.2991/aebmr.k.220307.021How to use a DOI?
Keywords
COVID-19; Consumer Confidence Index; stock market; China’s economy
Abstract

Under the background of the COVID-19 pandemic, China’s economy has been impacted to a certain extent. With the promulgation of the shutdown policy, domestic consumption and production have stagnated, and the stock index fell to a great extent in the first and second quarters. This study evaluated the impact using the OLS regression method to analyze the relationship between the daily newly confirmed number of COVID-19 in China and the stock index and stock turnover. GDP and consumer confidence indicator (CCI) are also the observation objects of this research. By studying the changes in production, consumption, and investment during the epidemic, this paper explains the epidemic’s impact on China’s stock market and economy. The result shows covid-19 greatly impacts the production capacity of enterprises and the consumption expectation of residents, resulting in a significant decline in GDP and CCI, leading to the downturn of the economy. The epidemic also has a great impact on the stock market. The stock index will fall every time a new epidemic breaks out, and there is a significant correlation between them. The Chinese government has issued an epic prevention and control policy that forces enterprises to suspend their production and many other business activities. This affected the enterprise’s production capacity, made its share price fall, and plunged the stock market into a downturn. However, during the epidemic period, the stock market’s trading volume increased significantly due to the reduction of consumption and the instability of enterprise operations.

Copyright
© 2022 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

Download article (PDF)

Volume Title
Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
26 March 2022
ISBN
978-94-6239-554-1
ISSN
2352-5428
DOI
10.2991/aebmr.k.220307.021How to use a DOI?
Copyright
© 2022 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

Cite this article

TY  - CONF
AU  - Jiexi Chen
AU  - Zijian Dong
PY  - 2022
DA  - 2022/03/26
TI  - The Impact of COVID-19 on Stock Market and China’s Economy
BT  - Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)
PB  - Atlantis Press
SP  - 130
EP  - 136
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220307.021
DO  - 10.2991/aebmr.k.220307.021
ID  - Chen2022
ER  -