The meltdown of the Chinese equity market in the summer of 2015

Dehong Liu, Hongmei Gu and Tiancai Xing

International Review of Economics & Finance, 2016, vol. 45, issue C, 504-517

Abstract: We study the Chinese stock market crash of 2015. We find that Chinese investors overreact to the government policies that may boost the stock market. This overreaction creates the equity bubble and eventually results in the stock market crash. We also find that fiscal policies excite the equity market more than monetary policies.

Keywords: Equity mispricing; Equity risk premium (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:45:y:2016:i:c:p:504-517

DOI: 10.1016/j.iref.2016.07.011

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