Industry Impact of Covid Epidemic based on Event Analysis

On the day of the outbreak, the Covid epidemic brought huge systemic risks in China stock market, which even offset the positive effects brought about by the epidemic. For example, industries such as medicine did not show the expected general rise on the day of the epidemic. After the outbreak, with the rapid intervention of the government, investor confidence regained and they had high hopes for the market outlook. The market rebounded quickly and returned to the pre-epidemic level in less than 10 days. However, the performance of various industries in this process is different. This paper examines the impact of Covid epidemic on various industries in China based on the event analysis method.

Quantifying Time-Frequency Co-movement Impact of COVID-19 on U.S. and China Stock Market Toward Investor Sentiment Index

The worldwide spread of COVID-19 dramatically influences the world economic landscape. In this paper, we have quantitatively investigated the time-frequency co-movement impact of COVID-19 on U.S. and China stock market since early 2020 in terms of daily observation from National Association of Securities Dealers Automated Quotations Index (NDX), Dow Jones Industrial Average (DJIA), Standard & Poor's 500 Index (SPX), Shanghai Securities Composite Index (SSEC), Shenzhen Securities Component Index (SZI), in favor of spatiotemporal interactions over investor sentiment index, and propose to explore the divisibility and the predictability to the volatility of stock market during the development of COVID-19. We integrate evidence yielded from wavelet coherence and phase difference to suggest the responses of stock market indexes to the COVID-19 epidemic in a long-term band, which could be roughly divided into three distinguished phases, namely, 30–75, 110–150, and 220–280 business days for China, and 80–125 and 160–175 after 290 business days for the U.S. At the first phase, the reason for the extreme volatility of stock market mainly attributed to the sudden emergence of the COVID-19 epidemic due to the pessimistic expectations from investors; China and U.S. stock market shared strongly negative correlation with the growing number of COVID-19 cases. At the second phase, the revitalization of stock market shared strong simultaneous moves but exhibited opposite responses to the COVID-19 impact on China and U.S. stock market; the former retained a significant negative correlation, while the latter turned to positively correlated throughout the period. At the third phase, the progress in vaccine development and economic stimulus began to impose forces to stock market; the vulnerability to COVID-19 diminished to some extent as the investor sentiment indexes rebounded. Finally, we attempted to initially establish a coarse-grained representation to stock market indexes and investor sentiment indexes, which demonstrated the homogenous spacial distribution in the vectorgraph after normalization and quantization, implying the strong consistency when filtering the frequent small fluctuations during the evolution of the COVID-19 pandemic, which might help insights into the prediction of possible status transition in stock market performance under the public health issues, potentially performing as the quantitative references in reasonably deducing the economic influences.

The Integration of Islamic Stock Markets of OIC Countries in China Stock Market Crisis and US-China 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.