Biomedical Industry in China under the Long-term Uncertain Situation: an Empirical Research Based on Time Series Model

Abstract

According to the stock price of biomedical industry in China, the outbreak of COVID-19 has had a significant positive impact on the biomedical industry. This paper based on the data on stock price of biomedical industry in China, and both the numbers of daily increased cases in China and overseas the since the outbreak of Covid-19, analyze the long-term relationship between the increased cases and the fluctuation of the biomedical industry. Different from prediction of many studies in the early days of Covid-19, this paper finds that after more than two years of instability, the newly diagnosed cases of Covid-19 in China still have a significant positive impact on the yield of stock price of Chinese biomedical industry, but the extent of the impact is lower and the rate of decay is faster compared to the beginning of Covid-19. The volatility of the yield of Chinese biomedical industry is also significantly affected by the newly increased cases in China. A larger number of daily Chinese increased cases is related to the higher volatility of Chinese biomedical industry. Meanwhile, new cases abroad have had no significant long-term impact on China's biomedical industry.