Abstract
In today's world, equities have become the investment of choice for most people. This paper aims to examine whether macroeconomic events impact the Chinese stock market and whether there is a volatility gap between different sectors. The paper uses an algorithm of abnormal and cumulative abnormal returns for the calculations. The events in this paper were selected from the two sessions of the China National Congress. The CSI 300 and the CSI 300 indices of four different sectors were counted to determine the effect generated by macroeconomic events through the AAR and CAAR icons. The study found that the stock market generates significant abnormal investment returns during the two sessions, and the pharmaceutical sector experiences more dramatic volatility. This is because these sectors are more sensitive to national policies and investors overreact to incomplete policy information.
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Acknowledgment
Jingqiu Pan and Jiaqi Lei contributed equally to this work and should be considered co-first authors.
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Pan, J., Lei, J., Zhou, Y. (2023). Research on the Impact of Macroeconomic Events on the Chinese Stock Market Through the Abnormal Investment Returns. In: Dang, C.T., Cifuentes-Faura, J., Li, X. (eds) Proceedings of the 2nd International Conference on Business and Policy Studies. CONF-BPS 2023. Applied Economics and Policy Studies. Springer, Singapore. https://doi.org/10.1007/978-981-99-6441-3_147
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DOI: https://doi.org/10.1007/978-981-99-6441-3_147
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