The Impact of Covid-19 on Large-Scale Real Estate Companies’ Stock Price

Abstract

Since the outbreak of the Covid-19 epidemic in December 2019, it rapidly spread to other regions of China and other countries in the world and has become a public health emergency of international concern. This epidemic has caused a substantial short-term impact on China’s national economy and many industries. This article will focus on China’s real estate industry, applying the event study to analyze the impact of Covid-19 on China’s real estate companies’ stock prices, especially the stock prices of large-scale real estate companies. It has been found that China’s real estate industry has been severely affected by the Covid-19 epidemic. The stock prices of the large-scale real estate companies have all declined due to the spread of the epidemic, with the most negative impact in the three and six months after the outbreak. The market presents a situation in which yields have decreased and volatility has increased.