The Asymmetric Impact of Abnormal Temperature on the Chinese Disaggregated Sectoral Stock Markets : Evidence from Panel Quantile Analysis

This paper investigates the impact of abnormal temperature on the Chinese disaggregated sectoral stock markets, including manufacturing, energy, transportation, agriculture, environmental and financial sectors. The panel quantile regressions show that abnormal temperature reduces stock returns, with manufacturing suffering the most. However, when the stock market fluctuates violently, abnormal temperature will benefit transportation and environmental stocks. Both energy consumption and investor attention to abnormal temperature have a negative mediating effect on the manufacturing and transportation but not on the energy sector, due to their divergent innovation strategies. Compared with region and property rights, fintech can alleviate climate risk more effectively in high-emission sectors, but its influence on agriculture is the least