What Was the Effect of the Shanghai Lockdown on the Chinese Stock Market, Chinese Airline Stocks and Chinese Healthcare Stocks?

With the COVID-19 pandemic affecting global economies and financial systems, examining how lockdown policies impact stock markets becomes crucial. This research examines the Chinese stock markets performance amid the 2022 Shanghai lockdown, concentrating on three primary sectors: the general market, aviation, and healthcare. Through event study and regression analysis, the impact of cumulative confirmed cases and deaths on the share prices of various industries at different stages was explored. The results show that the aviation and healthcare industries are more volatile when the epidemic worsens, while the overall market performance is relatively stable. This study highlights how lockdown policies affect different industries and offer valuable insights for future investors to better understand the effects of similar public health events on financial markets.