Bibi

Capital control, commercialize segmentation and cross-border flow of information: nigh empirical evidence from the Chinese gestate market Y. Gao Department of Economics home(a) University of Singapore Singapore 119260 and Y.K. Tse School of Business Singapore Management University Singapore 259368 July 2001 squeeze: This paper investigates the trading activities of two distinct classes of shareholders, namely, the Chinese municipal investors and the foreign investors in the segmented Chinese A-share and B-share markets, respectively. Based on the results of our event study, we document prominent volatility and trading volumes during the windows of network announcements. The market reaction is more intensive in the A-share market and takes place much earlier before the public put out of information. Furthermore, the abnormal trading volumes without price changes in advance of the public revelation support the hypothesis of existing information among the A-share investors. This manifests informa tion leakage and suggests an at large(p) information environment in the A-share market. We further classify the earnings announcements into favorable pertlys and bad news, and find that different information does not institute about different reaction patterns for the A shares.

Insider trading, speculation and over-optimistic prospects for the providence in the A-share market are possible explanations. 1 1. Introduction An important measure in Chinas economic reform is to reactivate the stock exchanges after four decades of abandonment. Accompanied by regulatory reforms, a move to partially privatize state-run enterprises appeared. The government selected some state-owned plants and restructured them to form new firms as parts of the original enterprises. These firms were then listed on unmatchable of the two exchanges, namely, the Shanghai Stock Exchange and the Shenzhen Stock Exchange. A listed firm may issue five types of shares in the Chinese stock market: state shares,... If you want to get a full essay, order it on our website: Orderessay

Order your essay at Orderessay and get a 100% original and high-quality custom paper within the required time frame.