Research Article
Impact of COVID-19 on China's Infrastructure Sector Bonds
@INPROCEEDINGS{10.4108/eai.17-6-2022.2322835, author={Shuhan Wu and Hanzhe Chen}, title={Impact of COVID-19 on China's Infrastructure Sector Bonds}, proceedings={Proceedings of the International Conference on Information Economy, Data Modeling and Cloud Computing, ICIDC 2022, 17-19 June 2022, Qingdao, China}, publisher={EAI}, proceedings_a={ICIDC}, year={2022}, month={10}, keywords={duration; covid-19; bond market; modified duration}, doi={10.4108/eai.17-6-2022.2322835} }- Shuhan Wu
Hanzhe Chen
Year: 2022
Impact of COVID-19 on China's Infrastructure Sector Bonds
ICIDC
EAI
DOI: 10.4108/eai.17-6-2022.2322835
Abstract
The global economy seems to have been affected to varying degrees by the COVID-19 pandemic. So is the bond market in China, where COVID-19 first emerged, tanked because of the outbreak? In this paper, Macaulay Duration and Modified Duration are used to calculate the data of four infrastructure industry bonds of the same type, same rating and same maturity from China's bond market before and after the outbreak of COVID-19, and then the data are grouped for comparison. In the end, we concluded that the impact of COVID-19 on China's bond market was not very serious, and the data of the four bonds showed that their maturity changes within the 5% level was normal. This result is likely due to increased, rather than reduced, demand for infrastructure in China during the COVID-19 pandemic. After the strong intervention of the government, the order of the Chinese market was obviously restored. However, the outbreak of COVID-19 has not stopped and the global economy has not shown a trend of recovery. Therefore, COVID-19 still has a lot of uncertain impact on China's bond market.