Trade War Risk and Valuations of Companies Listed Overseas: an Empirical Study on China Concept Stocks

Yan Peng, Song Li and Lijia Wei
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Song Li: School of Economics and Management, Wuhan University

Annals of Economics and Finance, 2022, vol. 23, issue 1, 95-139

Abstract: This article explores the impacts of the U.S.—China on the valuations of Chinese companies listed in the United States. The results reveal that the trade war negatively impacts the daily returns of Chinese concept stocks (CCSs). With other factors controlled for, as the U.S. TPU index rises, the daily returns of CCSs decrease remarkably, and their connection with the daily returns of bilateral markets is strengthened. Furthermore, we find that with the four stages of the trade war, namely, outbreak, truce, recurrence, and mitigation, the daily returns of CCSs have correspondingly fallen, stabilized, and then fallen and stabilized again.

Keywords: Overseas Listing; Investor Sentiment; China Concept Stocks; Valuation (search for similar items in EconPapers)
JEL-codes: F30 G14 G15 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (1)

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