The impact of Hong Kong's anti-ELAB movement on political related firms

Hong Kong's anti-ELAB movement had a significant impact on the stock market the stock price of listed companies. Using the number of protestors as the measurement of daily protesting intensity from 2019/6/6 to 2020/1/17, this paper documents that the stock price of listed companies associated with the pan-democratic parties were more negatively affected by protesting than other companies. Furthermore, this paper finds that after the implementation of the anti-mask law, protesting had a positive impact on red chips but a negative impact on companies related to pan-democracy parties. Therefore, this paper believes that after the central government and the HKSAR government adopted strict measures to stop violence and chaos, the value of the political connection of red chips became positive while the value of the connection with pan-democracy parties became negative.