Research On The Impact Of Sino-US Trade Friction Entity List On Stock Price Volatility In China

In recent years,the economic and trade friction between China and the United States has risen to a new height.The United States has constantly cracked down on the implementation of the national innovation strategy of "Made in China 2025",which not only restricts China’s exports to the United States,but also restricts American enterprises’ exports to China.Entity list is the means of the United States to restrict our country,entity list event will cause a certain degree of negative impact on the development of related enterprises in our country,and will reflect the share price of related enterprises.Therefore,this paper takes the entity list event under the background of Sino-US trade friction as the research object to study its impact on the stock price volatility of related Chinese enterprises has important practical significance.Firstly,this paper collects online resources to sort out the context of the whole event,to understand the background and motivation of Sino-US trade friction,the meaning of export control and the implementation status of the entity list.In order to explore the real impact of entity list events on stock prices,this paper selects the event on May 15,2019 from the previous entity list events as the research object,and uses the difference-in-difference model to conduct empirical research.As the same time,this paper also uses the intermediary effect to explore the mechanism of entity list on the stock price volatility of enterprises.It is found that the “entity list”event of Sino-US trade friction significantly affects the stock price fluctuation of related listed companies.And there will be a time affect within a week,which will first increase,then decrease and then disappear.Meanwhile,a series of tests have been conducted to confirm the validity and robustness of the results.In addition,the physical list of Sino-US trade frictions affects the stability of corporate stock prices through the channel of investor confidence.These results all confirm that the entity list can cause significant and large negative effects on the stock price volatility of related enterprises.In the context of the increasingly complex,severe and prolonged Sino-US trade friction,this paper provides relevant references and suggestions for relevant enterprises to deal with US sanctions in the future Sino-US trade friction entity list event.