The impact of global supply chain pressure on the stock market: A sectoral view
摘要
Geopolitical tensions, port congestions and pandemic have prompted unprecedented supply chain disruptions in the recent times. China’s pivotal role as a global manufacturing and trading hub makes it susceptible to these disruptions. In this backdrop, the following study investigates the relationship between global supply chain disruptions across sectors of the Chinese stock market by employing quantile-on-quantile regression. Our results reveal a predominant negative relationship for most of the sectors. Moreover, pronounced negative effects are observed for utilities and telecom sector. Lower quantiles of GSCP have strong negative (positive) influence when the market is bearish (bullish) across sectors, except for financial sector.