Impact of the US-China Trade War to Chinese-Listed Companies\u27 Stock Returns

Abstract

Since 2018, trade relations between the United States and China have become increasingly tense, with the United States attempting to restrict the development of Chinese companies through measures such as imposing tariffs and establishing entity lists. Chinese companies included in the entity list will lose opportunities to export products to the United States or import new technologies from the United States. This study employs the DID method, using Chinese A-share market-listed companies included in the entity list as samples, to examine the impact of Sino-US trade frictions on the stock returns of Chinese enterprises. The research findings indicate that this event has not had a significant effect on annual stock returns but has significantly negatively affected the annual high and low stock prices