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The Impact Of The Sentiment To Epidemic On China's Stock Market

Posted on:2021-02-11Degree:MasterType:Thesis
Country:ChinaCandidate:Z WangFull Text:PDF
GTID:2439330611994874Subject:Finance
Abstract/Summary:PDF Full Text Request
This paper takes the epidemic situation which has a great impact on China's economy as the research background.The epidemic has not only affected our daily life,but also started to have a negative impact on the economy and other aspects.The “COVID-19” epidemic broke out in late 2019,China's stock market slumped on the first trading day after the lunar New Year holiday shows that the epidemic has had a strong impact on the stability of China's stock market.Therefore,this paper collects the epidemic-related text from the online media,We Chat public platform and sina weibo,extracts the emotional index of the public towards the epidemic,and explores the impact of the epidemic-emotion on the stock market of China.This paper finds that: firstly,the change of social sentiment towards the epidemic has a significant impact on stock return.For the epidemic,positive social sentiment may lead to an increase in the stock return rate.Secondly,social epidemic-emotion have a significant impact on the trading activity of the stock market.Positive sentiment will increase investors' attention to stocks,thus significantly increasing the turnover rate of stocks.Thirdly,social epidemic sentiment has a certain prediction effect on stock return rate,but since the impact of sentiment on investors is relatively short-lived,the stock market's yield rate variation driven by sentiment will quickly reverse in a short period of time.Moreover,the impact of social epidemic sentiment on stock returns varies among individual stocks,which may be related to the current market value of the company or different from industry to industry.Finally,emotion extraction requires comprehensive consideration of information from various platforms.The empirical results show that the influence of various indexes on China's stock market indicators is different.This is due to the heterogeneity between the various platforms.For example,online media and We Chat public platforms are relatively more official,but the spread rate is slower.As a self-media platform,weibo spreads faster and more liberally.
Keywords/Search Tags:COVID-19, social sentiment, text mining, stock yield
PDF Full Text Request
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