Impacts of supply and demand shocks on abnormal fluctuation of stock price: An analysis of US–China trade friction | Zendy

Li Jinwei | Zendy; Wei Qian | Zendy; Jiang Tianshu | Zendy

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Impacts of supply and demand shocks on abnormal fluctuation of stock price: An analysis of US–China trade friction

Author(s) -

Li Jinwei,

Wei Qian,

Jiang Tianshu

Publication year - 2025

Publication title -

managerial and decision economics

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 0.288

H-Index - 51

eISSN - 1099-1468

pISSN - 0143-6570

DOI - 10.1002/mde.4097

Subject(s) - economics , stock (firearms) , china , monetary economics , demand shock , upstream (networking) , supply and demand , stock market , supply shock , oil supply , stock price , econometrics , microeconomics , monetary policy , mechanical engineering , computer network , paleontology , horse , series (stratigraphy) , political science , computer science , law , biology , engineering

Abstract This paper aims to study the impact of supply and demand shocks on abnormal fluctuation of stock price. We use event study and regression analysis methods to explain why the supply and demand shocks caused by US–China trade friction in targeting industries can affect the whole Chinese securities market. Our findings reveal a direct effect of shocks that can affect the stock prices of targeted companies. Additionally, there is a network effect in which the supply side and demand side shocks propagate upstream and downstream through the network, in turn affecting the stock prices of nontargeted companies.

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