Girardin / Liu Demystifying China's Stock Market

The Hidden Logic behind the Puzzles
1. Auflage 2019
ISBN: 978-3-030-17123-0
Verlag: Springer International Publishing
Format: PDF
Kopierschutz: 1 - PDF Watermark

E-Book, Englisch, 141 Seiten

Reihe: Psychology and Our Planet

Mainstream research has rationalized China's stock market on the basis of paradigms such as the institutional approach, the efficient market hypothesis, and corporate valuation principles. The deviations from such paradigms have been analyzed as puzzles of China's stock market. Girardin and Liu explore to what extent, in the perspective of Chinese cultural and historical characteristics, far from being puzzles, these 'deviations' are rather the symptoms of a consistent strategy for the design, development and regulation of a government-dominated financial system. This book will help investors, observers and researchers understand the hidden logic of the design and functioning of China's modern stock market, taking a political economy view.



Eric Girardin is Professor of Economics at Aix-Marseille University and Researcher at Aix-Marseille School of Economics, France. He is visiting Professor at Beijing University-HSBC Business School, UK. He was a member of the Advisory Council of the Asian Development Bank Institute (Oct 2004-Sept 2012).Zhenya Liu is Professor of Finance and Econometrics at the School of Finance, Renmin University of China, Beijing and Research Associate at CERGAM, Aix-Marseille University, France. He previously worked as Professor and Lead of Applied Quantitative Financial Economics at the Business School of the University of Birmingham, UK.

Autoren/Hrsg.

Girardin, Eric

Liu, Zhenya

Inhaltsverzeichnis

1;Preface;5
2;Contents;12
3;About the Authors;13
4;List of Figures;15
5;List of Tables;18
6;Chapter 1: Demystifying China’s Stock Market: The Hidden Logic Behind the Puzzles;19
6.1;1.1 The Puzzles;20
6.2;1.2 The Phoenix Market;21
6.3;1.3 A Financial System Dominated by the Government;23
6.4;1.4 A Speculative Market;24
6.5;1.5 The Political Economy of an Incomplete Market;26
6.6;References;27
7;Chapter 2: What Does History Tell Us? The Roots of China’s Modern Stock Market;29
7.1;2.1 Introduction;30
7.2;2.2 Corporations, Shareholding, and Early Financial Markets in Imperial China;31
7.2.1;2.2.1 First Corporations and Shareholding Enterprises;31
7.2.2;2.2.2 Early Financial Markets;35
7.3;2.3 Phoenix-like Markets;36
7.3.1;2.3.1 Stock Market;36
7.3.2;2.3.2 Bond Market;37
7.4;2.4 The Rebirth of the Phoenix;38
7.5;2.5 Lessons from China’s Historical Experience;41
7.5.1;2.5.1 Government Involvement;41
7.5.2;2.5.2 Speculative Market Crashes;43
7.6;2.6 Summary and Conclusions;46
7.7;References;47
8;Chapter 3: A Government-Dominated Financial System;50
8.1;3.1 Introduction;51
8.2;3.2 The Conundrum: How to Fit the Genie of the Stock Market Inside the Bottle of the Socialist Market Economy?;52
8.3;3.3 Chinese-Style Privatization;55
8.3.1;3.3.1 Multidimensional Ownership Reform;55
8.3.2;3.3.2 Motivations for Stock Market Creation;59
8.3.3;3.3.3 Reform of State-Owned Banks;61
8.4;3.4 Stock Market Development;64
8.4.1;3.4.1 Institutional Evolution and Regulation;64
8.4.2;3.4.2 Investors;67
8.4.3;3.4.3 Intermediaries and Infrastructure;69
8.4.4;3.4.4 Multi-layered Market;71
8.4.5;3.4.5 Split-share Reform;73
8.4.6;3.4.6 Opening Up;74
8.5;3.5 Summary and Conclusions;76
8.6;References;76
9;Chapter 4: A Chinese Style Speculative Market;80
9.1;4.1 Introduction;81
9.2;4.2 Speculation;82
9.2.1;4.2.1 What Attracts Investors to the Market?;82
9.2.2;4.2.2 Bubbles;85
9.3;4.3 Seasonality;92
9.4;4.4 An Alphabet Soup of Premia;96
9.4.1;4.4.1 From Trade to Financial Openness;97
9.4.2;4.4.2 A and B Markets;97
9.4.3;4.4.3 A and H Markets and Capital Controls;100
9.5;4.5 Summary and Conclusions;105
9.6;References;106
10;Chapter 5: The Political Economy of an Incomplete Market;110
10.1;5.1 Introduction;111
10.2;5.2 Corporate Governance Chinese Style;112
10.2.1;5.2.1 Enforcement;114
10.2.2;5.2.2 Concentration of Ownership;117
10.2.3;5.2.3 IPO Quota System;121
10.3;5.3 Multiple Principals and Price Informativeness;122
10.4;5.4 Deconcentrated Multiple Principals of Listed SOEs;127
10.5;5.5 Summary and Conclusions;131
10.6;References;133
11;Index;137