The Impact Of COVID-19 Incident On China’s Civilaviation Industry

As a major public health emergency,the COVID-19 epidemic has a short-term and strong impact on China’s socio-economic and capital market development.This thesis empirically investigate the correlation between the stock price and market value of listed airlines in China and the Covid-19 epidemic.I use the airlines stock transaction data and financial statements in the Shanghai and Shenzhen stock markets to study the impact of the Covid-19 epidemic on the fundamentals of airlines through the financial indicator method.In addition,I employ the event research method to study the effect of the pandemic on their performances in the stock markets.The analysis shows that the recovery of the airlines and their performances after the pandemic shock are determined by their operation models and target market heterogeneity.The study found that through the financial indicator method,it can be observed that the fundamentals of the sample listed airlines were severely damaged in the early stage of the outbreak of the pandemic.Although under the containment strategy adopted by China,the epidemic situation is well controlled,it is still difficult for airlines to escape serious losses.Furthermore,the econometric analysis of shows that whether it is the initial domestic outbreak of the Covid-19 epidemic,the consequent outbreak of the foreign epidemic or the multi-point spread during the normalization of domestic anti-covid-19 activities,the market rate of return of the entire aviation industry in the Chinese capital market is obviously negatively correlated with the disturbance of the epidemic.However,investors are not completely pessimistic about the aviation sector.Investors will screen and find investment targets with better operating models or potential for growth and development during the disturbance of the epidemic.