Study On Event Impact-US Anti-Dumping And Countervailing Sanctions On China PV Industry A-Share Stocks

In 2011,the US International Trade Commission and the Department of Commerce adopted anti-dumping and countervailing sanctions for China's PV export products.This event caused a major blow on China's PV industry which was highly dependent on the export market,and the related stock market was once in the doldrums.Previous studies have shown that financial markets are effective based on the assumption of "economic man",and the impact of events will be reflected in the changes in the related stock price.It has also been shown that investors are "bounded rational",which is based on human "limited attention".This paper extracts five continuous event nodes from the countervailing and anti-dumping incident,and analyzes all the domestic A-share PV industry listed companies of that period.Through the event study,it is found that the event does have an effect on the price of the corresponding stock.Meanwhile,through the comprehensive analysis of data information and test results for multiple event nodes,this paper found that: 1)irrational overreaction appears in the stock market by the influence of the event,and the corresponding excess rate of return will gradually subsided;2)If the event result is below market expectations,sometimes there will be a reverse excess rate of return;3)sometimes the event impact appears before the event announcement,mainly due to the pre-information of event and the investors' expectations.It is also observed that: in this case,the behavior subject,event-oriented certainty,and over expected level may have an influence on the amount and significance of the excess rate of return.This paper suggest investors to look for investment opportunities from the differences between event development and stock market expectations,and grasp the opportunity by capture the pre-information of event,meanwhile,be wary of stock sentiment to avoid loss.