Advances in Economics, Management and Political Sciences
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Proceedings of the 2nd International Conference on Business and Policy Studies
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From a stock market perspective: Is Lockdown Policy the Best Long-term Solution to COVID? Evidence from China and the UK
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Abstract
As one of the most frequently-taken measures to combat the COVID-19 viral spread, the lockdown policy had always been questioned with its impacts on the stock markets and accessibility in the long run. In this paper, I examine the respective stock closing prices of FTSE.GI and 0.000001SH in the UK and China, the countries that had announced lockdown policies several times to find out whether the lockdown restrictions and relaxations negatively affected the investors and their performance in the stock market. By analyzing the stock data with economic theories, it is found that although the markets did show positive returns in the final phases of declarations, they went through low liquidity, high volatility and negative returns for the majority time. Furthermore, the results also suggest that because of the presence of economic inertia and negative investor sentiment, further lockdown had adversely impacted the stock markets, indicating that the alternant lockdown announcements (restriction and relaxation) are not the best long-term solution to COVID from a stock market perspective.
Keywords
COVID-19, stock market, market return, lockdown policies, closing prices, investor sentiment, liquidity, volatility, economic inertia, long-term solution
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Data Availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
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- Volume Title
- Proceedings of the 2nd International Conference on Business and Policy Studies
- ISBN (Print)
- 978-1-915371-41-6
- ISBN (Online)
- 978-1-915371-42-3
- Published Date
- 13 September 2023
- Series
- Advances in Economics, Management and Political Sciences
- ISSN (Print)
- 2754-1169
- ISSN (Online)
- 2754-1177
- DOI
- 10.54254/2754-1169/7/20230224
- Copyright
- 13 September 2023
- Open Access
- This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited