This paper focuses on how Chinese and global economic policy uncertainties (CNEPU and GEPU) and geopolitical risks (CNGPR and GGPR) affect the growth of inbound tourism in China using ARDL and NARDL models as well as monthly series of Chinese inbound tourism revenue and arrivals. Firstly, we find significant effects of CNGPR and GGPR as well as GEPU on the growth of inbound tourism in Hainan Province and even in China nationwide, while the impact of CNEPU is limited. Among them, GEPU always has a significant long-term negative impact on inbound tourism growth (both inbound tourism revenue and inbound tourism arrivals). However, CNGPR has a significant short-term negative impact on inbound tourism growth in China nationwide but it has a significant long-term negative impact on inbound tourism growth in Hainan Province. Besides, estimation results of NARDL model further show the significant short-term effects of GEPU and GGPR on the growth of inbound tourism arrivals in Hainan Province and even in China nationwide, and such short-term effects are always significantly asymmetric. Among them, the negative components of GGPR can always more influence the growth of inbound tourism arrivals. However, the positive components of GEPU can more influence the growth inbound tourism arrivals in Hainan Province, but the negative components of GEPU can more influence the growth of inbound tourism arrivals in China nationwide.

From an industry perspective, this paper applies the quantile regression to investigate the impact of investor sentiment (IS) and China’s/U.S. geopolitical risks (GPR) on Chinese stock market volatility. Considering the structural break of the stock market for theperiod2003/02-2021/10, we find that the impact of geopolitical risk on stock market volatility is highly heterogeneous, and its significance mostly appears in the upper and lower tails. At the market level, China’s and U.S. GPR/IS and their interaction effects have no significant impact on China’s stock market volatility. However, there has an asymmetric dependence between China’s and U.S. GPR/IS and stock market volatility, and the dependence structure is changing. At the industry level, the current and lagging effects of China’s and U.S. GPR on industry stock market volatility are heterogeneous. Second, for most industries, China’s and U.S. GPR/IS can exacerbate industry stock market volatility both in bullish and bearish markets. In addition, China’s and U.S.GPR/IS and their interaction effects are heterogeneous and asymmetric, and the effects changes with the break point. Finally, compared with China’s GPR, the U.S. GPR has a larger impact on the industry stock market. The interactive effects of the U.S. GPR and IS can influence more industry stock market volatility.