The short-term impact of COVID-19 on the Chinese stock market

Abstract

This article applies the case study to examine the impact of COVID-19 on China's stock market during short periods and compares it with the severe acute respiratory syndrome and H7N9 avian influenza which happened before in China. This article also analyzes the impact of COVID-19 during short periods on different industries. By calculating the cumulative abnormal returns, and making related tables and figures, it can be found that COVID-19 has a significant negative impact on the stock market with the trend of sharp fluctuation range. Except for the Medical Biology industry, other industries were negatively affected by the epidemic. The negative impact of the three epidemics on the stock market is short term and COVID-19 has the strongest impact, followed by H7N9 avian influenza, and severe acute respiratory syndrome is the smallest.