haku: @author Lee, B.-S. / yhteensä: 5
viite: 2 / 5
| Tekijä: | Chen, G. M. Lee, B.-S. Rui, O. |
| Otsikko: | Foreign ownership restrictions and market segmentation in China's stock markets |
| Lehti: | Journal of Financial Research
2001 : SPRING, VOL. 24:1, p. 133-155 |
| Asiasana: | CHINA STOCK MARKETS MARKET SEGMENTATION |
| Kieli: | eng |
| Tiivistelmä: | The authors study market segmentation in China's stock markets, in which local firms issue two classes of shares: class A shares available only to Chinese citizens and class B shares available only to foreign citizens. Significant stock price discounts are documented for class B shares. The authors find that the price difference is primarily due to illiquid B-share markets. Relatively illiquid B-share stocks have a higher expected return and are priced lower to compensate investors for increased trading costs. However, between the two classes of shares, B-share prices tend to move more closely with market fundamentals than do A- share prices. Therefore, the authors find A-share premiums rather than B-share discounts in China's markets. |
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