The Financial Market in China under the COVID-19

ABSTRACT

The main aim of this study is to investigate the effects of COVID-19 on financial markets in China. Results of correlation analysis indicate that higher financial correlation among provinces emerged after the official announcement regarding COVID-19 in China. The Minimum Spanning Tree (MST) results after the pandemic announcement denote that Shanghai, Beijing, Jiangsu, Zhejiang, and Chongqing become the new cores, and the overall linking type exhibits cluster mode, which is varied from the intertwined connection mode. In addition, through Ensemble Empirical Mode Decomposition (EEMD) and Wavelet analysis, we found that financial markets in China are more susceptible to unexpected incidents.

KEYWORDS:

• COVID-19
• financial markets
• ensemble empirical mode decomposition
• wavelet analysis
• minimum spanning tree

Acknowledgments

This work was supported by the [Shaanxi Federation of Humanities and Social Sciences Circles] under Grant [2021ZD1046], [Department of science and technology of Shaanxi Province] under Grant [2021KRM020], [National Office for Philosophy and Social Sciences] under Grant [19XJY019], and [Ministry of Education in China] under Grant [20JZD012].

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Funding

This work was supported by the Ministry of Education of Humanities and Social Science Project [20JZD012]; National Office for Philosophy and Social Sciences [19XJY019]; Shaanxi Federation of Humanities and Social Sciences Circles [2021ZD1046]; Department of science and technology of Shaanxi Province [2021KRM020].