Stock Market Sentiment and the Draining of China's Savings Deposits
10 Pages Posted: 13 Oct 2008 Last revised: 22 Sep 2009
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
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