COVID-19 Sentiment and the Chinese Stock Market: Evidence from the Official News Media and Sina Weibo.
Res Int Bus Finance
; 58: 101432, 2021 Dec.
Article
in English
| MEDLINE | ID: covidwho-1253552
ABSTRACT
This study quantitatively measures the Chinese stock market's reaction to sentiments regarding the Novel Coronavirus 2019 (COVID-19). Using 6.3 million items of textual data extracted from the official news media and Sina Weibo blogsite, we develop two COVID-19 sentiment indices that capture the moods related to COVID-19. Our sentiment indices are real-time and forward-looking indices in the stock market. We discover that stock returns and turnover rates were positively predicted by the COVID-19 sentiments during the period from December 17, 2019 to March 13, 2020. Consistent with this prediction, margin trading and short selling activities intensified proactively with growth sentiment. Overall, these results illustrate how the effects of the pandemic crisis were amplified by the sentiments.
Full text:
Available
Collection:
International databases
Database:
MEDLINE
Type of study:
Prognostic study
Language:
English
Journal:
Res Int Bus Finance
Year:
2021
Document Type:
Article
Affiliation country:
J.ribaf.2021.101432
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