Climate policy uncertainty and dynamic volatility spillovers in Chinese stock market: Based on sectoral evaluation

This study examines volatility spillovers among climate-policy-relevant sectors in the Chinese stock market across both time and frequency domains. It further explores the impact of climate policy uncertainty on the risk spillover effect in the Chinese stock market and its underlying mechanisms. The...

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Bibliografiske detaljer
Main Authors: Zhiwei Zhang, Yahua Xu, Fei Su
Format: Article
Sprog:engelsk
Udgivet: KeAi Communications Co., Ltd. 2025-09-01
Serier:Journal of Management Science and Engineering
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Online adgang:http://www.sciencedirect.com/science/article/pii/S209623202500023X
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Summary:This study examines volatility spillovers among climate-policy-relevant sectors in the Chinese stock market across both time and frequency domains. It further explores the impact of climate policy uncertainty on the risk spillover effect in the Chinese stock market and its underlying mechanisms. The results reveal strong risk spillovers among climate-policy-relevant sectors across both time and frequency scales and emphasise that these are primarily driven by short-term risk contagion in the lower frequency bands. Additionally, climate policy uncertainty significantly reduces the risk spillover effect among climate-policy-relevant sectors. Further analysis demonstrates that investors' risk perception and adjustments in investment strategies are key channels through which climate policy uncertainty affects sectoral volatility spillovers. Overall, this study highlights the nonlinear and complex relationship between climate policy uncertainty and stock market spillovers, offering valuable practical insights for investors and policymakers.
ISSN:2096-2320