How does China's stock market react to supply chain disruptions from COVID-19?

Wang, Zhixuan; Dong, Yanli; Liu, Ailan

doi:10.1016/j.irfa.2022.102168

Cited by 34 publications

(21 citation statements)

References 64 publications

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“…Then Wang, Dong, and Liu confirm the guess. Their research of 505 firms demonstrates the impact of COVID-19 to different industries, among which medical industry experience significantly positive spillover effects [9]. Apart from that, Haroon, Ali, and Khan reach a similar conclusion in Islamic world.…”

Section: Related Literaturementioning

confidence: 85%

Do Investors Repeat History: Evidence from Post-pandemic Pharmaceuticals Industry

Zhou¹

2023

BCPBM

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The pharmaceuticals industry in China has boomed because of the outbreak of COVID-19, but investors’ overreaction brings it to a sharp volatility. With the time going on, the pandemic has been well controlled recently, and investors have developed a deeper perception of it, thus the situation becomes different. However, few researchers move their attention to problems in the post-pandemic world: how the pharmaceuticals industry perform now and whether investors learn something from the history. These problems do make sense as they are more related to what people face of the moment. By building VAR and ARMA-GARCH-X model, this research conducts a time series analysis on these topics in the post-pandemic background. Since the series are stationary after some processing and the models pass strict test, some reliable conclusions are reached. It is found that the pharmaceuticals industry is less affected by COVID-19 nowadays as the pandemic has been normalized. What’s more, although investors repeat history, the degree of their irrationality is mitigated, indicating that history lessons at least leave some positive impacts on investors’ behaviors. Such conclusions suggest that policy makers should carry out hedging measures to reduce possible overreactions, and that investors should not follow the trend blindly, or the bubble will burst at any time.

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Section: Related Literaturementioning

confidence: 85%

Do Investors Repeat History: Evidence from Post-pandemic Pharmaceuticals Industry

Zhou¹

2023

BCPBM

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“…Similarly, stock prices of freight operators declined following WHO’s declaration of a global pandemic outbreak. This was perceived as bad news in which investors expected that shocks related to COVID-19 would impact economic activities, cause the collapse of demand and global trade owing to country restrictions (Gavalas et al, 2021), and create transportation and supply chain disruptions ( Wang et al, 2022 ).…”

Section: Discussionmentioning

confidence: 99%

“…Following a series of government restrictions implemented worldwide, overall transport systems and all stages of the global supply chains were disrupted. Although the transportation industry has been among those most severely impacted by supply chain disruption triggered by the pandemic ( Wang et al, 2022 ), the effects of COVID-19 have not been uniform across all sectors of the industry ( Tardivo et al, 2021 ). However, previous studies have investigated the impact of COVID-19 on passenger markets ( Chen et al, 2022 , Mumbower, 2022 , Shortall et al, 2021 , Warnock-Smith et al, 2021 , Zhang et al, 2021), express logistics ( Bastug and Yercan, 2021 ; Yang et al, 2021), and freight markets ( Fang and Guo, 2022 , Narasimha et al, 2021 ; Notteboom et al, 2020).…”

Section: Literature Review and Research Hypotheses Developmentmentioning

confidence: 99%

Comparative evidence on the impact of the COVID-19 outbreak and vaccine discovery on the global transportation industry

Maneenop

Kotcharin

2023

Transportation Research Interdisciplinary Perspectives

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“…It is noteworthy that the location asymmetry in the long-run effects of China's EPU on the green bond index occurred during the COVID-19 pandemic. The virus ravages cause dramatic turbulence in the economy, such as the stock market (Wang et al, 2022d), commodity market (Chen et al, 2022) and real estate market (Huang et al, 2022). China has had to implement policies such as city lockdowns and tax reductions to curb the pandemic and stimulate economic development.…”

Section: Rolling Window Analysismentioning

confidence: 99%

Oil Price Shocks, Economic Policy Uncertainty, and Green Finance: A Case of China

Wang

Umar

et al. 2022

Technological and Economic Development of Economy

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This study investigates the long- and short-run effects of crude oil price (COP) and economic policy uncertainty (EPU) on China’s green bond index (GBI) using the quantile autoregressive distributed lag model. The empirical results show that COP and EPU produce a significant positive and negative influence on GBI in the long-run across most quantiles, respectively, but their short-run counterparts are opposite direction and only significant in higher quantiles. Thus, major contributions are made accordingly and shown in the following aspects. The findings emphasise the importance of understanding how COP and EPU affect China’s green bond market for the first time. In addition, both the long- and short-run effects are captured, but long-run shocks primarily drive the green bond market. Finally, time- and quantile-varying analyses are adopted to explain the nexus between COP and EPU to GBI, which considers not only different states of the bond market but also events that occur in different time periods. Some detailed policies, such as a unified and effective green bond market, an early warning mechanism of oil price fluctuation, and prudent economic policy adjustments, are beneficial for stabilising the green finance market.

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How does China's stock market react to supply chain disruptions from COVID-19?

Cited by 34 publications

References 64 publications

Do Investors Repeat History: Evidence from Post-pandemic Pharmaceuticals Industry

Do Investors Repeat History: Evidence from Post-pandemic Pharmaceuticals Industry

Comparative evidence on the impact of the COVID-19 outbreak and vaccine discovery on the global transportation industry

Oil Price Shocks, Economic Policy Uncertainty, and Green Finance: A Case of China

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