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Insights from the (in)efficiency of Chinese sectoral indices during COVID-19
Leonardo H S Fernandes1, Fernando H A de Araujo2, Benjamin M Tabak3
1Department of Economics and Informatics, Federal Rural University of Pernambuco, Av. Gregório Ferraz Nogueira, S/N - José Tomé de Souza Ramos, 569090-535, PE, Serra Talhada, Brazil.
Abstract:
This article evaluates the effects of the crisis caused by the new Coronavirus (COVID-19) on the Chinese sectoral indices. Using the complexity-entropy plane methodology, we find that the COVID-19 crisis caused increased inefficiency in most of China's equity sectors. We also find heterogeneous effects depending on the economic sector. Our results are useful for a better understanding the effect of global shocks on the stock markets and how their effects are distributed across economic sectors.
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