The Impact of COVID-19 on Stock Market and China’s Economy
These authors contributed equally.
- 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.
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 -