scholarly journals Does the US-China trade war affect co-movements between US and Chinese stock markets?

2021 ◽  
pp. 101477
Author(s):  
Yujie Shi ◽  
Liming Wang ◽  
Jian Ke
Keyword(s):  
Stock Markets ◽  
China Trade ◽  
The Us ◽  
Trade War ◽  
Chinese Stock Markets

scholarly journals Perbandingan Reaksi Pasar di AS, China dan Indonesia terhadap Perundingan Perang Dagang AS-China

2020 ◽  
Vol 30 (9) ◽  
pp. 2270
Author(s):  
Giovaninho Ferreira Da Costa ◽  
I Made Sukartha
Keyword(s):  
Stock Markets ◽  
Abnormal Return ◽  
Market Reaction ◽  
Total Sample ◽  
Cumulative Abnormal Return ◽  
Event Window ◽  
China Trade ◽  
Stock Indices ◽  
The Us ◽  
Trade War

This study aims to examine the market reaction in the American, Chinese, and Indonesian stock markets about the announcement of the results of the US-China trade war negotiations. The events of the trade war negotiations took place on 10-11 October 2019. This research used the event study method and the purposive sampling method. The population in this study consisted of Dow 30, SSE 50 and LQ45 stock indices with a total sample of 123 companies. The study used Cumulative Abnormal Return (CAR) as a variable which was data from the Dow 30, SSE 50, and LQ45 stock indices during the event window. Based on the results of the analysis, it was found that there was a market reaction on the American, Chinese, and Indonesian stock markets on the announcement of the results of the US-China trade war negotiations. So there is information content for the event. The results also showed that there were differences in reactions between the American, Chinese, and Indonesian stock markets on the announcement of the results of the US-China trade war negotiations. Keywords: Market Reaction; Cumulative Abnormal Return; Trade War Negotiations.

scholarly journals If worst comes to worst: Co-movement of global stock markets in the US-China trade war

2020 ◽  
Vol 9 (1) ◽  
pp. 21 ◽  
Author(s):  
Toan Luu Duc Huynh ◽  
Tobias Burggraf
Keyword(s):  
Stock Markets ◽  
Heavy Tails ◽  
China Trade ◽  
Movement Characteristics ◽  
The Us ◽  
Trade War ◽  
Global Stock Markets ◽  
Dependency Structures ◽  
European Equity ◽  
Global Stock

This paper investigates the co-movement characteristics of global stock markets in the context of the US-China trade war. By applying a set of different trivariate Copulas, our results suggest that markets co-move symmetrically in the pre-trade war period, but exhibit negative downside movements and heavy tails during the trade war. Furthermore, we find evidence for left-tail dependency structures during that period. Most importantly, this study finds that the trade war poses a systematic risk on global markets, which potentially can trigger simultaneous market downside trends. Our results are robust across different European equity market indices.

scholarly journals The Integration of Islamic Stock Markets of OIC Countries in China Stock Market Crisis and US-China Trade War

2021 ◽  
Vol 13 (1) ◽  
Author(s):  
Deri Siswara
Keyword(s):  
United States ◽  
Stock Market ◽  
Stock Markets ◽  
The United States ◽  
Distributed Lag ◽  
China Trade ◽  
The Us ◽  
China Stock Market ◽  
Trade War

The purpose of this study is to analyze the integration and response of the Islamic stock market of the OIC countries before the crisis and during the China stock market crisis also during the United States-China trade war with the Autoregressive Distributed Lag (ARDL) method. The results showed that there was no cointegration in the period before the China stock market crisis. However, during the period of the China stock market crisis and the United States-China trade war, the cointegration was more common. The Islamic stock market of Qatar, Saudi Arabia and the UAE experienced a domino effect from fluctuations in crude oil prices. Then, the Indonesia Islamic stock market in the two crisis periods had a long-term relationship with the US and China stock markets. Whereas the Malaysian and Bangladesh Islamic stock markets have only a long-term relationship with the US stock market. In terms of the benefits of portfolio diversification for investors, there is relevance of dominant economic, geographical, and trade relations in influencing the integration of the Islamic stock market.

scholarly journals The Dimensions of the US-China Trade War

2020 ◽  
Vol 3 (1) ◽  
pp. 47-55
Author(s):  
Mohamad Zreik
Keyword(s):  
United States ◽  
Indian Ocean ◽  
Free Trade ◽  
The United States ◽  
Bilateral Agreements ◽  
China Trade ◽  
The Pacific ◽  
The Us ◽  
The Indian Ocean ◽  
Trade War

AbstractThe Chinese Ministry of Commerce issued a statement Friday morning, July 6, 2018, confirming the outbreak of a trade war between the United States and China. The statement came after the United States imposed tariffs on many Chinese goods, in violation of international and bilateral agreements, and the destruction of the concept of free trade which the United States calls for following it. It is a war of opposite directions, especially the contradiction between the new Trump policy and the Chinese approach. The proof is what US Defense Secretary James Matisse announced in Singapore in early June 2018 of “the full strategy of the new United States, in the Indian Ocean and the Pacific,” where China was the “sole enemy of the United States” in China’s geostrategic region. Intentions have become publicized, and trade war between the two economic giants is turning into a reality. This paper will give an overview of the US-China scenario of trade war, then a focused analysis on the Trump’s administration economic decision regarding China, and the consequences of this decision.

The Thucydides Trap as an Alternative Explanation for the US–China Trade War

2020 ◽  
Vol 12 (1) ◽  
pp. 42-55 ◽  
Author(s):  
Imad A. Moosa
Keyword(s):  
Alternative Explanation ◽  
Bilateral Trade ◽  
National Income ◽  
Trade Deficit ◽  
Basic Principles ◽  
China Trade ◽  
The Us ◽  
The Usa ◽  
Thucydides Trap ◽  
Trade War

The current trade war between the USA and China is perceived to be motivated by the US desire to curtail the bilateral trade deficit, on the assumption that reducing the deficit boosts economic growth. This flawed proposition indicates gross misunderstanding of the national income identity and the basic principles of macroeconomics. The imposition of tariffs will not reduce the trade deficit as the assumptions and conditions required for a smooth working of the process are unrealistic and counterfactual. The notion of an economic Thucydides trap is put forward to explain why the trade war is motivated by US apprehension about China’s rising economic power.

scholarly journals Forecasting Bitcoin returns: is there a role for the US–China trade war?

2021 ◽  
Author(s):  
Vasilios Plakandaras ◽  
Elie Bouri ◽  
Rangan Gupta
Keyword(s):  
China Trade ◽  
The Us ◽  
Trade War

China’s Indigenous Innovation Policies

2019 ◽  
Vol 11 (02) ◽  
pp. 5-12
Author(s):  
Erik BAARK
Keyword(s):  
Public Procurement ◽  
Technical Standards ◽  
China Trade ◽  
The Us ◽  
Indigenous Innovation ◽  
Trading Partners ◽  
International Trading ◽  
Trade War ◽  
Key Industries ◽  
Innovation Policies

Policies promoting indigenous innovation were launched in 2006. The aim was to use public procurement, support for megaprojects in science and technology, and the development of technical standards for key industries to encourage Chinese firms to develop their own intellectual property. These policies have been criticised by international trading partners, and remain a major issue in the US–China trade war. Nevertheless, China will no doubt continue to support indigenous innovation.

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