| Summary: | Since late January 2020, a pneumonia epidemic caused by a new type of coronavirus has swept the world. So far, it has not only caused millions of infections, but also triggered a global financial tsunami and economic turmoil. China’s tertiary industry has accounted for an increasing proportion of GDP in recent years, but the tertiary industry is mainly composed of small and medium-sized enterprises, which has been severely affected by COVID-19. This paper aims to examine the impact of COVID-19 to the tertiary industry and chooses the stock index of transportation and logistics, education, tourism, culture, and wholesale and retail industry as a representative.
For the data part, this paper selects the daily closing price of five indices that are complied by Shenzhen Stock Exchange on behalf of the five industries as independent variables, and selects 50 stocks with large market value in the tertiary industry to form a “index” to represent the stock index of the tertiary industry as the dependent variable from September 1st, 2019 to June 30th, 2020. Then establish the OLS model with a dummy variable which is used to present before and after the outbreak. The results show that tourism and education industry actually are not significant. Finally conclude that COVID-19 may cause economic stalls in the short term, but upward trend of China's and global long-term economic improvement have not changed.
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