The Impact of COVID-19 on the Chinese Stock Market: An Event Study Based on the Consumer Industry

Abstract

Using an event study approach, this paper investigates the impact of the coronavirus pandemic (COVID-19) on the consumer industry in the Chinese stock market. We find that stocks belonging to the consumer industry was adversely impacted by the pandemic in the first three trading days after the incident. However, this impact is transitory. With the implementation of government policies, stock returns of the industry maintain steady growth.