Analysis of Financial Risks and Stock Price Fluctuations of Enterprises under Sino-US Trade Friction

Abstract

In August 2017, the US initiated a Section 301 investigation against China’s trade practices, and on March 2018, the Office of the US Trade Representative accused China of unfair trade practices ranging from the forced transfer of technology to Chinese firms and intellectual property theft. For these reasons, the United States continues to impose tariffs on Chinese goods. China followed with a series of counter-measures, which became the beginning of a trade war between the two countries. It has a widespread influence on the global markets, international relations and the stability of national economies. This paper collects the stock price fluctuation and financial risk data of Intel before and after the trade war and makes a comparative analysis of the data. We explore how and when the US Trade War came and was framed. Besides China and USA, is there any other country that has had a substantial positive or negative impact from the US Trade War. Finally, we found that how the trade war affects the stock price and change the financial risk of the firms in China and the USA. According to research findings, the trade war had a negative impact on Internet stock prices and financial risks in both countries.