Third, several studies show that event risks (e.g., pollution events, hurricane disasters) will have a negative effect on firm valuation [37,38,39]. Moreover, Liu et al. [40] emphasize that significant events lead to abrupt changes in stock prices and volatility, and investors are more likely to hold less risky assets. In the case of the COVID-19 outbreak in China, the continued increase in the amount of new confirmed cases in one specific provincial region may increase the event risk and investors would be less likely to hold the financial assets from that area.