Chinese stock market and evaluation (1994–2005)

A. Haque and Wang Shaoping

International Journal of Business and Emerging Markets, 2008, vol. 1, issue 1, 14-23

Abstract: Using data of listed Chinese companies and applying fixed effect technique, we report some stylised facts about stock market valuation. Based on the Gordon (1962) present-value model, slow growing and frequently traded firms with fewer A shares have higher market valuations. Uncertainty measured by volatility of daily stock market returns has significant negative effect on stock market valuation. Higher risk perception leads to arbitrage and frequent short-term investment. The present market spread may allocate resources inefficiently and can have devastating effects on the economy. With steady and committed reforms, market might expand, allocate capital efficiently and help finance China's economy.

Keywords: Chinese stock market; fundamentals; stock market valuation; uncertainty; volatility; China; risk perception; arbitrage; short-term investment; resource allocation; capital allocation; emerging markets. (search for similar items in EconPapers)
Date: 2008
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=19242 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:ijbema:v:1:y:2008:i:1:p:14-23

Access Statistics for this article

More articles in International Journal of Business and Emerging Markets from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().