The Influence Of "One Belt And One Road" Policy On The Performance Of Related Stocks

Two thousand years ago,the Silk Road continuous extended on the world map witnessing the friendly exchanges between people along the road.Two thousand years later,the ancient Silk Road is still full of vigor.Exchanges are unprecedented frequent,and a new strategic plan is also gradually making periodical achievement.Since the“One Belt and One Road”proposed for more than four years,the promotion of policies has not only benefited the development of countries along the route,but also accelerated the pace of Chinese companies going abroad.According to data released by the Ministry of Commerce,,Chinese companies signed 7,217 newly signed contracts in more than 60 countries along the“One Belt and One Road"projects in 2017.And the amount of contracts is up to 14.432 billion dollars,which accounted for 54.4%of China's foreign contracting during the same period and is 14.5%higher than the year-on-year increase of 126.03 billion dollars in 2016.The completed turnover was 85.53 billion dollars,accounting for 50.7%of the total amount for the same period.It can thus be seen that since the implementation of the "One Belt and One Road" policy,there has been a direct impact on Chinese companies in overseas engineering projects and overseas investment,but in the process,the impact on the performance of related companies has yet to be explored.Therefore,this article takes the concept stocks as the research object and explores the influence factors of the underlying stock price.Based on the "One Belt and One Road" Index and combined with the event study method and the propensity score matching method,this paper discusses the impact of the "One Belt and One Road" Policy on the relevant stocks from both stock daily return rate and profitability.This paper uses the event study method,selects six policy events related to the "One Belt and One Road" policy,and calculates the CAR.The results show that the policy contributes to the wealth effect of the related companies in the capital market,and the short-term performance is positive.This leads to the conclusion that the announcement of the "One Belt and One Road" policy information can promote the rise of related concept stocks.In order to further study whether there is a support for the increase of corporate profitability behind the rise in stock prices,this paper uses the "One Belt and One Road" concept stock as a treatment group and the remaining listed company as a control group,matches the sample,and calculates the ATT.In this way,it can be concluded that the policy has a positive impact on the performance of companies and that the stimulation of the stock price by policy information is based on the conclusion that the investor has recognized the expected effects of the policy.The purpose of this paper is to introduce the influence of the“One Belt and One Road" Policy on the share prices and the level of profitability of related listed companies,to discuss the impact of policy information on stock price volatility from part to whole,and to provide investors with investment advice ultimately.