Stock Market Sentiment and the Draining of China's Savings Deposits

10 Pages Posted: 13 Oct 2008 Last revised: 22 Sep 2009

See all articles by Richard C. K. Burdekin

Richard C. K. Burdekin

Claremont McKenna College - Robert Day School; Claremont McKenna College - Robert Day School of Economics and Finance

Luke Redfern

Credit Suisse

Abstract

This letter examines the importance of sentiment effects on asset allocation decisions in mainland China. While liquidity matters too, we find that rising stock market sentiment exerted a statistically significant negative effect on Chinese time deposit growth during 2003-2007.

Keywords: China, savings deposits, share prices, sentiment, Shanghai

JEL Classification: O16, E41

Suggested Citation

Burdekin, Richard C. K. and Burdekin, Richard C. K. and Redfern, Luke, Stock Market Sentiment and the Draining of China's Savings Deposits. Economics Letters, Forthcoming, Robert Day School of Economics and Finance Research Paper No. 2008-10, Available at SSRN: https://ssrn.com/abstract=1282373

Richard C. K. Burdekin (Contact Author)

Claremont McKenna College - Robert Day School ( email )

500 E. Ninth St.
Claremont, CA 91711-6400
United States
909-607-2884 (Phone)
909-621-8249 (Fax)

HOME PAGE: http://www.cmc.edu/rdschool

Claremont McKenna College - Robert Day School of Economics and Finance ( email )

500 E. Ninth St.
Claremont, CA 91711-6400
United States
909-607-2884 (Phone)
909-621-8249 (Fax)

HOME PAGE: http://www.cmc.edu/rdschool

Luke Redfern

Credit Suisse ( email )

United States

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