The influence of the COVID-19 pandemic on asset-price discovery: Testing the case of Chinese informational asymmetry.

ABSTRACT: The circumstances surrounding the outbreak of the COVID-19 pandemic have generated substantial international political strain as governments attempt to mitigate the widespread associated social and economic repercussions. One theory has focused on the potential for Chinese informational asymmetry. Using Chinese financial market data, we attempt to establish the scale and direction of information flows during multiple distinct phases of the development of the pandemic. Two specific results are identified. Firstly, the majority of domestically-traded Chinese stocks present evidence of significant information flows at a far earlier stage than internationally-traded comparatives, suggesting that domestic investors recognised the dangers associated with COVID-19 far in advance of the rest of th

SUBMITTER: Corbet S 

PROVIDER: S-EPMC7486623 | biostudies-literature | 2020 Nov

REPOSITORIES: biostudies-literature