Market Reactions in China to the US-Houthi Conflict: An Event Study Approach

Rizky Yudaruddin, Dadang Lesmana, Felisitas Defung, Ardi Paminto

2025

Abstract

This study aims to examine market reactions in the Chinese market to the US-Houthi conflict, employing the event study methodology with cumulative abnormal returns (CAR) as a proxy for market reactions. The analysis focuses on a sample of 2,114 Chinese companies. The findings reveal that the Chinese market exhibited significant reactions during the post-event period, with nearly all sectors affected rather than a single sector. This suggests that the conflict disrupted the Suez Canal trade route, a critical pathway for China's trade with Europe, leading to increased investor pessimism. These results provide implications for policy makers and managers in overcoming supply chain disruptions due to the war.

Paper Citation

in Harvard Style

Yudaruddin R., Lesmana D., Defung F. and Paminto A. (2025). Market Reactions in China to the US-Houthi Conflict: An Event Study Approach. In Proceedings of the 7th International Conference on Finance, Economics, Management and IT Business - Volume 1: FEMIB; ISBN 978-989-758-748-1, SciTePress, pages 118-125. DOI: 10.5220/0013474800003956

in Bibtex Style

@conference{femib25,
author={Rizky Yudaruddin and Dadang Lesmana and Felisitas Defung and Ardi Paminto},
title={Market Reactions in China to the US-Houthi Conflict: An Event Study Approach},
booktitle={Proceedings of the 7th International Conference on Finance, Economics, Management and IT Business - Volume 1: FEMIB},
year={2025},
pages={118-125},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0013474800003956},
isbn={978-989-758-748-1},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 7th International Conference on Finance, Economics, Management and IT Business - Volume 1: FEMIB
TI - Market Reactions in China to the US-Houthi Conflict: An Event Study Approach
SN - 978-989-758-748-1
AU - Yudaruddin R.
AU - Lesmana D.
AU - Defung F.
AU - Paminto A.
PY - 2025
SP - 118
EP - 125
DO - 10.5220/0013474800003956
PB - SciTePress