| Summary: | The 2020-2023 COVID-19 pandemic is the longest lasting and most extensive public emergency since the founding of China. In order to explore the impact of such public emergencies on China's economy, this paper proposes a hypothesis: the COVID-19 pandemic will cause fluctuations in the stock market and affect the economy. In order to explore the short-term impact of the COVID-19 outbreak on the Chinese stock market, this paper uses GARCH (1,1) to study the volatility changes of the Shanghai Stock Exchange Composite Stock Index (SSEC) and the Growth Enterprise 50 Index (SZEXT50) from 2020 to 2023.
Based on the research results, this paper concludes that policies or news favorable to the epidemic can reduce the volatility of stock prices, while news unfavorable to the epidemic can increase the volatility. The first COVID-19 related policy had the biggest impact on the stock market. Previous studies by scholars have shown that the risk of the COVID-19 epidemic to China's stock market is not only the production and transportation problems caused by the epidemic, but also the decline of investors' confidence in the market. This paper takes the COVID-19 outbreak as an example to study the impact of public emergencies on China's stock market prices, hoping to supplement existing theories, provide certain experience for scientific response to public emergencies in the future, arouse social attention to public emergencies, and provide useful reference for improving the ability to respond to public health emergencies. To promote sustainable social and economic development.
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