The Real Value of China's Stock Market

Abstract

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Policy Uncertainty and Innovation: Evidence from IPO Interventions in China

“…Although the IPO suspension policy itself is China-specific, policy uncertainty in IPO markets exists in many countries. Chinese stock markets were modeled after those in developed countries in some fundamental ways and have been shown to price future profits as informatively (Carpenter & Whitelaw 2017, Carpenter, Lu & Whitelaw 2018. Furthermore, since the early 2000s, Chinese private equity and patenting activity have borne increasing similarity to the United States and Europe (e.g.…”

Anomalies in Chinese A-Shares

“…9 Studies finding no momentum effect include those by Wang [2004]; Wong, Tan, and Liu [2006]; Chen et al [2010]; Chui, Titman, and Wei [2010]; Li, Qiu, and Wu [2010]; Wu [2011b]; and Cheung, Hoguet, and Ng [2014]. Other studies report some evidence of significant medium-term momentum in A-shares returns, including those by Kang, Liu, and Ni [2002]; Naughton, Truong, and Veeraraghavan [2008]; Cakici, Chan, and Topyan [2015]; and Carpenter, Lu, and Whitelaw [2015]. Studies showing profits to short-term reversals include those by Kang, Liu, and Ni [2002]; Li, Qiu, and Wu [2010]; Wu [2011b]; Cakici, Chan, and Topyan [2015]; and Carpenter, Lu, and Whitelaw [2015].…”

The Impact of Market Condition and Policy Change on the Sustainability of Intra-Industry Information Diffusion in China

“…Beltratti et al [25] discuss that this reform lays down the conditions for essential future changes in ownership, liquidity, and corporate governance in China. However, Carpenter et al [27] suggest that the split-share structure reform has only little direct immediate impact on the structure of China's stock market in the short term.…”

“…They argue that only some small stocks and historically neglected stocks are partially beneficial from this reform. Additionally, Carpenter et al [27] suggest that the split share structure reform has little direct immediate impact on the structure of the China stock market in the short term. Table 7.…”