An Empirical Study Of The Impact Of Trump's Tweets On China's Stock Market

Capital markets,which are sensitive to news,have been greatly affected by the development of Internet technology.As an important leader,Trump's tweets always release important news,involving domestic policies and international diplomatic means,and make a special effect on various countries,like China.In order to promote the growth of China's capital market,this passage studies the impact of Trump's tweets on China's stock market.This article uses the event research method.It selects six events and divides the estimation window and event window.Then it chooses 180 stocks,10 industry and the Shanghai Composite Index for the research data.The most important step is calculating the abnormal return(AR),average abnormal return(AAR),and cumulative abnormal return(CAR)in the event window.Finally,get the value of CAR under event windows of different lengths significance test and important research conclusions.The full text focuses on establishing an empirical model and conducting a significance test.Through empirical analysis,a large number of research results are obtained.The results show that the stock market is rational and efficient,and Trump's tweets indeed have an important impact on China's stock market.Due to the existence of many factors such as market expectations and event interference,event effects will show weakening phenomenon by degrees.The conclusions based on data performance can not only provide theoretical support for the impact of important international leaders' speeches on changes in stock market,but also are beneficial to China's stock market system maturity.