Abstract: Recent haze weather events make the air quality problem a social hot topic. Public awareness of the detrimental effects of air pollution on health has grown significantly. On the basis of overall control, government departments are increasingly paying attention to territorial responsibility, collaborative prevention and control, and pollution source supervision. Public awareness and the local government's measures have greatly impacted listed companies, especially those with heavy air pollution. Understanding the impact of air pollution on stock market trading is therefore imperative for policy makers and investors.

Key words: air pollution; air quality; stock prices; local policies; investor sentiment