THE IMPACT OF COVID-19 OUTBREAK ON CHINA SECTORAL INDICES IN SHORT AND MEDIUM RUN

Abstract

The novel coronavirus COVID-19 has severe consequences for countries around the globe. The purpose of this study to find out the impact of COVID-19 on China’s sectoral indices in the short and medium run. This research investigates the impact of COVID-19 on stock exchange index, exchange rates, money lending, and oil prices in the Chinese economy in the short and medium run by using secondary data of different sectoral sectors. The outcomes show that COVID-19 has strongly influenced these sectors. The Shanghai stock exchange is showing a decline in transactions due to this pandemic in the short run. But in the medium run, the outcome shown that Shanghai stock exchange has upward trend. The pandemic has reduced exchange rate of Chinese RMB to US dollar in short-run, but in medium run, Chinese RMB has gained appreciation against US dollar. The money lending for medium enterprises is showing downward curve. Result shows that money lending rate has reduced from 3.25% to 3.10% in the short-run and 2.95% in medium run. Overall, pandemic has had significant influence on the Chinese economy and development.