China's main stock market index, the SHANGHAI, fell to 3898 points on December 2, 2025, losing 0.42% from the previous session. Over the past month, the index has declined 1.98%, though it remains 15.36% higher than a year ago, according to trading on a contract for difference (CFD) that tracks this benchmark index from China. China Shanghai Composite Stock Market Index - values, historical data, forecasts and news - updated on December of 2025.

This study investigates the influence of investor sentiment on the Chinese stock market during the COVID-19 pandemic, using an event study analysis to examine data from December 2019 to December 2022. It aims to explore how investor sentiment, driven by news, social media, and economic uncertainties, has affected stock market performance during the pandemic. Data from 2005 to 2022 have been used to analyze abnormal and cumulative returns across key pandemic-related events, such as government interventions, lockdowns, and vaccine rollouts. The results show significant fluctuations in market returns driven by changes in sentiment. Positive sentiment, linked to government stimulus measures and vaccine announcements, led to positive market reactions, while negative sentiment, stemming from pandemic uncertainty, triggered market downturns. The study contributes to understanding the role of sentiment in market volatility, particularly in an emerging market like China, during periods of crisis. Accordingly, the study suggests multiple policy implications for policy makers.

Regression findings of panel data analysis comparing sentiment levels before and after the epidemic.

Regression findings of panel data analysis for equities across several sectors.

In 2023, the construction industry accounted for about *** percent of China's gross domestic product (GDP), representing a continuation of the figure from the previous year.

A vital industry for the economy Since the 1998 housing reform, China's real estate industry has expanded dramatically and has become one of the country's pillar industries. Similarly, China's infrastructure construction has also boomed since the early 2000s. To mitigate the impact of the 2008 global financial crisis and maintain the country's economic output, the Chinese government launched a four trillion yuan stimulus plan and invested substantial resources in infrastructure development across the country, such as high-speed railway and highway projects. These developments have all made the construction industry one of the most important segments of the Chinese economy.

An important employer nationwide The construction industry also plays a key role in China's labor market, with more than ********** people employed in the sector in 2023. It is also one of the top sectors for China's migrant workers, with more than ** percent working in construction in 2023. However, due to the challenging working environment, more and more young migrant workers are choosing to work in other professions, such as couriers and food delivery. With China's real estate sector facing significant headwinds, infrastructure construction stagnating, and local governments now under substantial fiscal pressure, the future of China's construction industry is becoming increasingly uncertain.

Regression findings of panel data analysis on sentiment, reversal, and regional effects.

Cumulative abnormal return for different COVID-19 outbreaks.