When local and foreign investors meet the Chinese government's risk perception about COVID-19

IF 2.9 3区经济学 Q2 BUSINESS, FINANCE Journal of Multinational Financial Management Pub Date : 2024-04-07 DOI:10.1016/j.mulfin.2024.100858

Chao Deng , Shiyu Li , Yun Hong

引用次数: 0

Abstract

This paper explores the nuanced extreme market responses exhibited by segmented domestic and foreign investors in reaction to state media coverage of the COVID-19 pandemic in China’s A-share and H-share markets. Our findings indicate that an extreme increase (or decrease) in this unexpected attention is likely to lead to an extreme increase (or decrease) in stock prices. Domestic investors show increased sensitivity to an abnormal decrease in state media attention, whereas foreign investors are more responsive to an increase in this attention. An extreme unexpected decline in state media coverage of the pandemic significantly influences extreme fluctuations in the A-share market’s trading volume. In contrast, an abnormal increase in state media coverage of the pandemic tends to extremely decrease the H-share market’s trading volume. In the early panic phase, domestic (foreign) investors tend to reach a consensus more on abnormal declines (increases) in state media reports on the pandemic.

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当本地和外国投资者遇到中国政府对 COVID-19 的风险认知时

本文探讨了中国 A 股和 H 股市场中，细分的国内外投资者对国家媒体报道 COVID-19 大流行病所表现出的细微极端市场反应。我们的研究结果表明，这种意外关注的极端增加（或减少）很可能导致股票价格的极端增加（或减少）。国内投资者对国家媒体关注度的异常下降表现出更高的敏感性，而外国投资者则对这种关注度的增加反应更为灵敏。国家媒体对大流行病报道的极端意外减少会显著影响 A 股市场交易量的极端波动。相反，国家媒体对大流行病报道的异常增加往往会导致 H 股市场交易量的极度下降。在恐慌初期，国内（国外）投资者更倾向于就国家媒体对疫情报道的异常减少（增加）达成共识。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of Multinational Financial Management BUSINESS, FINANCE-

CiteScore

7.30

自引率

4.80%

发文量

审稿时长

30 days

期刊介绍： International trade, financing and investments have grown at an extremely rapid pace in recent years, and the operations of corporations have become increasingly multinationalized. Corporate executives buying and selling goods and services, and making financing and investment decisions across national boundaries, have developed policies and procedures for managing cash flows denominated in foreign currencies. These policies and procedures, and the related managerial actions of executives, change as new relevant information becomes available. The purpose of the Journal of Multinational Financial Management is to publish rigorous, original articles dealing with the management of the multinational enterprise. Theoretical, conceptual, and empirical papers providing meaningful insights into the subject areas will be considered. The following topic areas, although not exhaustive, are representative of the coverage in this Journal. • Foreign exchange risk management • International capital budgeting • Forecasting exchange rates • Foreign direct investment • Hedging strategies • Cost of capital • Managing transaction exposure • Political risk assessment • International working capital management • International financial planning • International tax management • International diversification • Transfer pricing strategies • International liability management • International mergers.

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