Learning Chinese? The Changing Investment Behavior of Foreign Institutions in the Chinese Stock Market
37 Pages Posted: 21 Nov 2018 Last revised: 18 Nov 2021
Date Written: November 19, 2018
Abstract
We analyze preferences of foreign institutional investors in the Chinese stock market in a sample that covers 2003 to 2014. We find foreign investors changed their investment behavior during the sample period from generic patterns found in much of the world to China-specific patterns. The results suggest that foreign institutions learned to adjust their investment behavior to account for unique features of the Chinese market.
Keywords: foreign investor, institutional investor, Qualified Foreign Institutional Investor (QFII) scheme, China
JEL Classification: G11, G15
Suggested Citation: Suggested Citation
Korkeamäki, Timo and Virk, Nader and Wang, Haizhi and Wang, Peng, Learning Chinese? The Changing Investment Behavior of Foreign Institutions in the Chinese Stock Market (November 19, 2018). BOFIT Discussion Paper No. 19/2018, Available at SSRN: https://ssrn.com/abstract=3288388 or http://dx.doi.org/10.2139/ssrn.3288388
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