Erratum to "Do Small Traders Contribute to Price Discovery? Evidence from the Hong Kong Hang Seng Index Markets"

2010 ◽  
pp. n/a-n/a
Keyword(s):  
Hong Kong ◽  
Price Discovery ◽  
Small Traders

scholarly journals Does the Capital Market Opening Improve the Price Discovery Efficiency of Stock Market? An Empirical Research Based on Shanghai-Hong Kong Stock Connect

2021 ◽  
Vol 2021 ◽  
pp. 1-14
Author(s):  
Xueyan Yu ◽  
Yanbing Yu
Keyword(s):  
Hong Kong ◽  
Stock Market ◽  
Information Content ◽  
Insider Trading ◽  
Capital Market ◽  
Stock Price ◽  
Price Discovery ◽  
Price Information ◽  
Market Opening ◽  
Reaction Speed

Whether capital market opening improves the price discovery efficiency of stock market is an important issue. Shanghai-Hong Kong Stock Connect (hereafter, SHKSC) is a milestone event in the opening up of China’s capital market. Based on SHKSC, using the method of PSM + DID, we study the impact of capital market opening on the price discovery efficiency from two dimensions-stock price information content and price reaction speed to information. Our research shows that capital market opening did not increase stock price information content, but speed up the reaction of price to information. Therefore, capital market opening improves capital market’s price discovery efficiency in terms of response speed of stock price to information. Further analysis shows that capital market opening affects stock price reaction speed through improving market information environment and reducing insider trading, but it has not yet had a substantial impact on listed companies’ earnings quality, which is the main participant in the capital market, and therefore has failed to influence the stock price information content. In order to maximize the effectiveness of capital market opening, it is necessary to introduce more effective policies to improve the information disclosure quality of listed firms and reduce the level of insider trading.

Restrictions on Allocation Discretion: Evidence from Clawbacks in Hong Kong IPOs

2013 ◽  
Vol 03 (03n04) ◽  
pp. 1350018 ◽  
Author(s):  
Emmanuel Morales-Camargo
Keyword(s):  
Hong Kong ◽  
Institutional Investors ◽  
Price Discovery ◽  
Distribution Functions ◽  
Investment Banks ◽  
Individual Investors ◽  
Investment Bankers ◽  
Retail Investors ◽  
Just Price ◽  
Public Offer

The presence of both restricted and unrestricted, US-style, bookbuilt initial public offer (IPOs) in Hong Kong provides an ideal environment to test numerous underpricing models by simultaneously measuring the effects of allocation restrictions on the investment bankers' price discovery, underwriting, and distribution functions. While clawbacks, a set of allocation restrictions favoring retail investors not participating in the roadshow result in diminished and more expensive price discovery, they also reduce the investment bankers' dependence on institutional investors to dispose off IPO shares, resulting in lower underpricing. This favors models that highlight the importance of the underwriting function on underpricing, and shows that allocation restrictions can impact more than just price discovery. In addition, this study shows that individual investors can partially offset the loss of roadshow information caused by clawbacks, countering the idea that investment banks are unable to extract any pricing information from investors outside their list of roadshow regulars.

Short Sales and Price Discovery in the Hong Kong Real Estate Market

2015 ◽  
Vol 45 (1) ◽  
pp. 133-153 ◽  
Author(s):  
Siu Kei Wong ◽  
Thomas C. C. Lai ◽  
Kuang Kuang Deng
Keyword(s):  
Hong Kong ◽  
Real Estate ◽  
Price Discovery ◽  
Real Estate Market ◽  
Short Sales

Short-Sales Constraints and Price Discovery: Evidence from the Hong Kong Market

2007 ◽  
Vol 62 (5) ◽  
pp. 2097-2121 ◽  
Author(s):  
ERIC C. CHANG ◽  
JOSEPH W. CHENG ◽  
YINGHUI YU
Keyword(s):  
Hong Kong ◽  
Price Discovery ◽  
Short Sales
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