Performance of Shanghai Composite Index and Sector Indices in The Beginning of Novel Coronavirus Pandemic

Khim-Sen Liew, Venus and Chin-Hong, Puah (2021) Performance of Shanghai Composite Index and Sector Indices in The Beginning of Novel Coronavirus Pandemic. Asian Journal of Finance & Accounting, 13 (1). pp. 1-21. ISSN 1946-052X

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Abstract

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.

Item Type: Article
Uncontrolled Keywords: Novel coronavirus, COVID-19, SARS-CoV-2, pandemic, Chinese stock market, Exponential Generalized Autoregressive Conditional Heteroscedasticity, UNIMAS, University, Borneo, Malaysia, Sarawak, Kuching, Samarahan, IPTA, education, Universiti Malaysia Sarawak
Subjects: H Social Sciences > HB Economic Theory
Divisions: Academic Faculties, Institutes and Centres > Faculty of Economics and Business
Depositing User: Sanawi
Date Deposited: 14 Jun 2021 04:26
Last Modified: 14 Jun 2021 04:26
URI: http://ir.unimas.my/id/eprint/35491

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