COVID-19 Mortality Rate,air Pollution And The Fluctuation Of Financial Market

In 2020,the COVID-19 virus has brought great harm to the world.The virus has been designated as a global pandemic by the WHO.By the end of April 10,2021 at 15:46,the total number of confirmed viruses has reached 135328386 people worldwide.This COVID-19 has caused great loss of life and property to the whole world.Many people pay attention to the relevant data of COVID-19 every day,and the relevant information of COVID-19,especially the more serious death cases,will affect investors’ investment expectations and make them change their investment strategies,thus causing fluctuations in the financial market.More serious COVID-19 information will also cause panic among the public,causing sharp fluctuations in the financial market.In March 2020,the US stock market experienced four consecutive fuses.COVID-19 is continuing and its impact on the financial market will continue for some time.Therefore,this paper studies the impact of Wuhan COVID-19 mortality rate and diagnostic rate on Hubei financial market volatility.COVID-19 has great damage to the respiratory system and immune system of human body.Patients with COVID-19 infection will have cough.persistent fever,diarrhea,and other symptoms.Severe patients will have dyspnea,systemic hypoxia,and even death.PM2.5 can affect human respiratory system and destroy human immune system.Air is a necessary environment for human life,and the quality of air is related to everyone’s health.COVID-19 is a virus that has the greatest impact on the respiratory system.Both of them have an impact on the human respiratory system.Therefore,the concentration of PM2.5 may have an impact on the number of deaths and daily confirmed cases of COVID-19,And through the disclosure of COVID-19’s relevant data information,the impact will be extended to the fi nancial market of Hubei province.Therefore,it is of great significance to study the relationship between the financial market and air pollutants and the diagnosis rate and mortality rate of COVID-19 in the serious moment of COVID-19.At present,many scholars have noticed that the information of COVID-19 will be related to the fluctuation of local financial market.Air pollutants such as PM2.5 will have a certain impact on the diagnosis rate and mortality rate of COVID-19.In this paper,we first use the Newey West robust estimation method,and use the third-order lag heteroscedasticity autocorrelation robust HAC standard error to carry out regression analysis on the mortality and diagnosis rate of Hubei composite index and Wuhan COVID-19 in 42 trading days from February 4 to April 1,2020.The concentrations of PM2.5,CO and other air pollutants and the temperature of the previous day were added into the model.The regression results show that there is a negative correlation between the daily mortality of Wuhan’s cowid-19 and Hubei composite index,and the closing price of Hubei composite index will decrease by 17.3%when the mortality of Wuhan’s cowid-19 increases by 1%,which is significant at the level of 1%.At the same time,regression results also show that the previous day’s COVID-19 diagnosis rate has no significant impact on the fluctuation of Hubei composite index during this period.That is,the data related to mortality of COVID-19 in Wuhan has a direct impact on the fluctuation of Hubei’s financial marketIn this paper,GLS and MLE regression models were used to study the relationship between the mortality of COVID-19(January 24-march 31,2020)and the concentration of PM2.5 and other air pollutants in different cities of Hubei Province,and the relationship between the diagnosis rate(January 22-march 10,2020)and the concentration of PM2.5 and other air pollutants in different districts of Wuhan city.The regression results showed that the concentration of PM2.5 in the air was positively correlated with the immediate mortality rate of COVID-1 9,and positively correlated with the diagnosis rate of COVID-19.When only PM2.5 concentration was used to regress the logarithm of the death rate of COVID-19,the results showed that the coefficient of PM2.5 concentration was significantly positive,and then the coefficient was still significantly positive after adding the concentration of other air pollutants,the binary variable LC(Hubei Province replaced the provincial Party Secretary)and some other variables into the model.The regression coefficient showed that the immediate death rate of COVID-19 increased by 1.06%when the concentration of PM2.5 increased by 1 μg/m3.Using the data of different districts in Wuhan City,we analyzed the impact of PM2.5 and other air pollutants concentration on the daily diagnosis rate of COVID-19.GLS and MLE regression results showed that the daily diagnosis rate(DDR)of COVID-19 would increase by 0.949%with the increase of PM2.5 concentration by 1 μg/m3.This proves that the concentration of PM2.5 in Wuhan city has an indirect impact on the financial market of Hubei Province the next day.In addition,this paper also draws some other conclusions,daily temperature has a significant negative correlation with the mortality and infection rate of COVID-19,and the mortality of COVID-19 has decreased significantly after the change of secretary of Hubei provincial Party committeeTherefore,this paper proposes the interaction and information transmission mechanism among financial market,COVID-19 mortality and PM2.5 concentration Firstly,the concentration of PM2.5 in Wuhan city will have a positive impact on the mortality of COVID-1 9.The changes of the data related to the mortality of COVID-1 9 in Wuhan city will affect the fluctuation of the closing price of Hubei composite index,and it is a negative impact,that is,the mortality of COVID-19 in Wuhan City will increase,and the closing price of Hubei composite index will decrease to a certain extent.The deeper mechanism is that the information about the death rate of COVID-19 makes investors panic and change their investment plans,such as selling their own stocks,thus causing fluctuations in the financial market.This paper argues that the government should publicize the relevant information of COVID-19 openly and transparently,and actively take measures to reduce the panic of the public,so as to maintain the stability of the financial market.In addition,it is necessary for local governments to increase investment in environmental protection,and further reduce the concentration of air pollutants,especially PM2.5.The public should also improve their awareness of environmental protection.At the same time,in order to reduce the transmission speed of COVID-19 and reduce the number of infected people,in order to further reduce the mortality.this paper suggests that relevant research institutions study the interaction mechanism between PM2.5 and other air pollutants and COVID-19.