Jesus-Silva, NatachaDos Santos, Maria José Palma Lampreia2023-08-022023-08-022023Jesus-Silva, N., Dos-Santos, M. (2023). Impact of China-Pakistan economic investment on volatility of stock exchanges in Pakistan and Shanghai. In S. Nazir (ed.), Human factors in management and leadership. (Vol.92, pp.49-54). AHFE International. http://doi.org/10.54941/ahfe1003733978-1-958651-68-1http://hdl.handle.net/10400.21/16363This paper aims to analyze the impact of the China-Pakistan Economic Corridor on the volatility of the Pakistan Stock Exchange and Shanghai Stock Exchanges, namely, to explore the pre and post-impact China investments in Pakistan in the energy sector on the stock exchanges of the respective countries. The methods used include an econo- metric analysis, and univariate statistical analysis, from February 2010 to January 2020. The results present a significant difference in volatilities of the pre and post-returns of both indices. Stock prices increased post-CPEC announcement in Pakistan, and there was a growth in the stock market. However, the mean return post-CPEC announcement is relatively lower than Pre-announcement tenure, combined with higher volatility. It shows small investors’ underconfidence. The conclusion is the significant economic advantages of CPEC to PK.engChina-pakistan economic corridorVolatilityMean reversionPSX indicesbook part10.54941/ahfe1003733