2016 U.S. Presidential Election and Stock Markets in China

  •  SingRu Hoe    
  •  Srinivas Nippani    


This study seeks to address the question if the 2016 U.S. Presidential election and Mr. Donald Trump’s path to U.S. presidency affected the stock market returns in China. We do not find conclusive results from three leading stock indices of China, SHCOMP, SZCOMP, and SHSZ300. There is an immediate impact shown in SHSZ300, but not in SHCOMP and SZCOMP. We ascribe this to the impact of less sophisticated investors who dominate the stock market in China and also to that country’s censorship of the media wherein the government could effectively either block or downplay the unfavorable information.


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