H7N9 hit Chinese stock marketing

Objectives This study aims to detect the effect of daily reported case number of human avian influenza A(H7N9) on relating stock index in Chinese stock market.
Methods This release date of confirmed case of human avian influenza A(H7N9) and the index with transaction days during February 19, 2013 to March 31, 2014 were collected to construct the time series. ANOVA was utilized to investigate the overall effect between cross-basis transformed daily reported case number of human avian influenza A(H7N9) and the opening price and closing price of the four sector indices and overall market index, respectively. A distributed lag non-linear model (DLNM) was utilized to describe the variation trend of the stock index along with the daily reported number of confirmed H7N9 case, and the lag effect of the reported number of confirmed H7N9 case on the stock index.
Results The cross-basis transformed daily reported case number of human avian influenza A(H7N9) is significantly associated with the closing price of the avian influenza sector index (P<0.05) , and it is significantly associated with the opening price of the Shanghai composite index (P= 0.029). Avian influenza sector index decreased with the increasing of daily reported case number, and then the index rose. The cross-basis transformed daily reported case number of human avian influenza A(H7N9)is significantly associated with the opening and closing price of Chinese traditional medicine sector index (P<0.05for both), biological product sector index (P<0.05for both), and biomedicine sector index (P<0.05for both). The sector indices of Chinese traditional medicine, biological product and biomedicine decreased with the increasing of daily reported case number when the daily reported case number was small. The effect of delayed lags was weak.
Conclusion New or reemerging infectious diseases epidemic cause economic loss, and which was reflected in the stock market.