Stock Prices in a Speculative Market: The Chinese Split-Share Reform

Speculative Trading and Stock Prices: An Analysis of Chinese A-B Share Premia

In this paper we use data from China’s stock markets to analyze non-fundamental components in stock prices. During the period 1993-2000, several dozen Chinese firms offered two classes of shares: class A, which could only be held by domestic investors, and class B, which could only be traded by foreigners. Despite their identical rights, Ashare prices were on average 400% higher than the corres...

Does Investor Sentiment affect Cross- Sectional Stock Returns on the Chinese A-Share Market?

How Cloud Computing Impacts Stock Market Prices

Cloud computing is an evolution of computing technology and reflects a shift in the way it is delivered to businesses and individuals. Enterprises can significantly lower their cost of ownership, reduce time to value and faster adapt to changing needs in a globalized economy. Despite research and practice predict productivity increases and cost savings when migrating to the cloud one question r...

Diversification in the Chinese Stock Market

Modern finance theory suggests that individual investor should hold a well-diversified portfolio instead of individual stocks. In practice, one only needs to hold limited number of stocks to achieve the effect of diversification, that is reducing the idiosyncratic volatility. In this paper, we study the benefit of diversification in emerging markets, such as the Chinese equity markets, where id...

Puzzles in the Chinese Stock Market

Many companies on China’s stock markets have traditionall y had separate , restricted classes of shares for domestic residents and foreigners. These shares are identical other than for who can own them, but foreigners have generally paid only about one-quarter the price paid by domestic residents . We argue that the generally higher level (and volatility) of domestic share prices is consisten t...