Comparison of The Impact of Monetary Policies on Financial Markets between China and US during COVID-19

Abstract

Given the fact about the outbreak of COVID-19 in 2020, COVID-19 has significantly influenced our daily life and production. As a collaborative integration in the tourism industries. The airline, hotel, and travel industries are among the industries that are most seriously affected by the epidemic. This paper aims to find out the influence of COVID-19 on the return of the daily stock price of these three industries. The abnormal returns are used to estimate the impact of the epidemic on the stocks’ daily returns. This study also relates other vital variables that can influence the value of a firm with the cumulative abnormal return of the three industries by cross-sectional regression. The results of the study reveal the negative impact of the emerging crisis. It confirms that China’s stock market remained relatively stable. The impact of COVID-19 was not so significant in comparison with many countries.