The COVID-Crisis Could Make Financial Statements Implode

Much worse than in 2007-08, the COVID-19 shock is the Great Financial Crisis. A study of the financial markets’ reaction to COVID-19 has not yet been done. For COVID’19, a detailed examination of the financial markets of China and also USA will be conducted from the 1st of March to the 25th of March 2020. The influence of the novel Corona Virus on the Chinese and the financial markets of the USA was examined from March 1 to 25, 2020, using a simple regression model. The historical records of China from March 1st to March 25th, 2020, COVID - 19 Statistics Reports and Trading Economics are used in this inves-tigation. Comparing Chinese and American stock markets was done using the Shanghai Stock Exchange (SSE) and Dow Jones index. The Shanghai Stock Exchange and the New York Dow Jones are used as independent variables in the study to examine the effect of the COVID-19 on the financial markets. Findings were fascinating, as was the research itself. There was a strong cor-relation between the 19 confirmed COVID instances and the Chinese and US financial markets between March 1 and March 25, 2020. (Including the Shang-hai Stock Exchange and the Dow Jones in New York). The Corona Virus had a big effect on the Chinese and US financial markets from March 1 to 25, 2020