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Chinese Stock Market Performance and Natural Disasters

Whelsy Boungou et al.

Journal of Emerging Market Finance2025https://doi.org/10.1177/09726527251318132article
AJG 2ABDC B
Weight
0.37

Abstract

In this article, we investigate the impact of natural disasters on Chinese stock market performance over the period from 2017 to 2023. Using monthly financial data from 2,117 Chinese companies and climate data relating to floods and storms, our results highlight a negative association between stock market returns and natural disasters. We observe that the recurrence of natural disasters reduces the stock market returns of Chinese companies. We also find that, whatever the intensity of the natural disaster (number of deaths and people affected) and the company’s sector of activity, the observed effect is verified. Our results also show that firms’ Environmental, Social, and Governance (ESG) performance influences their exposure to natural disasters. We find that firms with higher ESG scores perform better despite natural disasters than other firms. This article thus provides the first detailed evidence of Chinese firms’ exposure to natural disasters. JEL Codes: G12, G32, Q40

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https://doi.org/https://doi.org/10.1177/09726527251318132

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@article{whelsy2025,
  title        = {{Chinese Stock Market Performance and Natural Disasters}},
  author       = {Whelsy Boungou et al.},
  journal      = {Journal of Emerging Market Finance},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.1177/09726527251318132},
}

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Chinese Stock Market Performance and Natural Disasters

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Evidence weight

0.37

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.16 × 0.4 = 0.06
M · momentum0.53 × 0.15 = 0.08
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.