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Reaction to news in the Chinese stock market: A study on Xiong’an New Area Strategy

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  • Li, Kun

Abstract

This study investigates how stock markets react to different news categorized by diverse aspects. We take the Xiong’an New Area Strategy, the most recent breaking event and milestone national plan in China, as the target to study. We collect Xiong’an-related news and classify them by different aspects: sentiment, source and origin of viewpoints. Our results indicate that positive news improves the performance of the stock market and the trading of individual stocks, whereas negative news impedes them. News from government-related media has greater effects on stock market and stocks than news from other sources. News with viewpoints from academia has greater effects than news with viewpoints from governments and industries.

Suggested Citation

  • Li, Kun, 2018. "Reaction to news in the Chinese stock market: A study on Xiong’an New Area Strategy," Journal of Behavioral and Experimental Finance, Elsevier, vol. 19(C), pages 36-38.
    • Handle: RePEc:eee:beexfi:v:19:y:2018:i:c:p:36-38
    DOI: 10.1016/j.jbef.2018.03.004
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    Cited by:

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    2. Terver Kumeka & Oluwatosin Adeniyi, 2023. "Stock markets response to contagious disease: Evidence on the impact of COVID‐19 in the three worst hit African economies," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(4), pages 4476-4499, October.
    3. Arcuri, Maria Cristina & Gandolfi, Gino & Russo, Ivan, 2023. "Does fake news impact stock returns? Evidence from US and EU stock markets," Journal of Economics and Business, Elsevier, vol. 125.
    4. Yassine Kirat & Djamel Kirat, 2022. "Impact assessment of the COVID-19 pandemic on financial markets," Economics Bulletin, AccessEcon, vol. 42(2), pages 667-677.
    5. Marian Pompiliu Cristescu & Dumitru Alexandru Mara & Raluca Andreea Nerișanu & Lia Cornelia Culda & Ionela Maniu, 2023. "Analyzing the Impact of Financial News Sentiments on Stock Prices—A Wavelet Correlation," Mathematics, MDPI, vol. 11(23), pages 1-20, November.
    6. Al-Awadhi, Abdullah M. & Alsaifi, Khaled & Al-Awadhi, Ahmad & Alhammadi, Salah, 2020. "Death and contagious infectious diseases: Impact of the COVID-19 virus on stock market returns," Journal of Behavioral and Experimental Finance, Elsevier, vol. 27(C).
    7. Bhanwar Singh & Rosy Dhall & Sahil Narang & Savita Rawat, 2024. "The Outbreak of COVID-19 and Stock Market Responses: An Event Study and Panel Data Analysis for G-20 Countries," Global Business Review, International Management Institute, vol. 25(3), pages 606-631, June.
    8. Kun Li & Nasrin R. Khalili & Weiquan Cheng, 2019. "Corporate Social Responsibility Practices in China: Trends, Context, and Impact on Company Performance," Sustainability, MDPI, vol. 11(2), pages 1-19, January.
    9. Alomari, Mohammad & Al Rababa'a, Abdel Razzaq & Ur Rehman, Mobeen & Power, David M., 2022. "Infectious diseases tracking and sectoral stock market returns: A quantile regression analysis," The North American Journal of Economics and Finance, Elsevier, vol. 59(C).
    10. Szczygielski, Jan Jakub & Brzeszczyński, Janusz & Charteris, Ailie & Bwanya, Princess Rutendo, 2022. "The COVID-19 storm and the energy sector: The impact and role of uncertainty," Energy Economics, Elsevier, vol. 109(C).
    11. Xu, Yingying & Lien, Donald, 2022. "Which affects stock performances more, words or deeds of the key person?," International Review of Financial Analysis, Elsevier, vol. 84(C).
    12. Al-Maadid, Alanoud & Alhazbi, Saleh & Al-Thelaya, Khaled, 2022. "Using machine learning to analyze the impact of coronavirus pandemic news on the stock markets in GCC countries," Research in International Business and Finance, Elsevier, vol. 61(C).
    13. Muhammad Kashif & Fatima Sultana & Muhammad Atif & Muhammad Aslam & Ammara Sarwar & Umar Farooq Awan & Muhammad Wasif Hanif, 2023. "COVID-19 Attack on Stock Markets: Event Study and Panel Data Analysis of Organization of Islamic Countries (OIC)," Journal of Economic Impact, Science Impact Publishers, vol. 5(1), pages 50-63.

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    More about this item

    Keywords

    Chinese stock market; Xiong’an New Area; News; Intra-day data;
    All these keywords.

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading

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