Learning Chinese? The changing investment behavior of foreign institutions in the Chinese stock market

Timo Korkeamäki; Nader Virk; Haizhi Wang; Peng Wang

doi:10.1016/j.irfa.2019.05.011

Learning Chinese? The changing investment behavior of foreign institutions in the Chinese stock market

Timo Korkeamäki, Nader Virk, Haizhi Wang, Peng Wang

Finansiell ekonomi, Helsingfors

Forskningsoutput: Tidskriftsbidrag › Artikel › Vetenskaplig › Peer review

17 Citeringar (Scopus)

Sammanfattning

We analyze preferences of foreign institutional investors in the Chinese stock market in a sample that covers 2003 to 2014. We find that 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. Rather than following the diversified portfolio approach, they follow investment strategies that focus on a limited number of firm features.

Originalspråk	Engelska
Referentgranskad vetenskaplig tidskrift	International Review of Financial Analysis
Volym	64
Nummer	July
Sidor (från-till)	190-203
Antal sidor	14
ISSN	1057-5219
DOI	https://doi.org/10.1016/j.irfa.2019.05.011
Status	Publicerad - 01.07.2019
MoE-publikationstyp	A1 Originalartikel i en vetenskaplig tidskrift

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512 Företagsekonomi

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10.1016/j.irfa.2019.05.011Licens: CC BY-NC-ND

1-s2.0-S1057521918307889-mainPublicerad version, 608 KBLicens: CC BY-NC-ND

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title = "Learning Chinese? The changing investment behavior of foreign institutions in the Chinese stock market",

abstract = "We analyze preferences of foreign institutional investors in the Chinese stock market in a sample that covers 2003 to 2014. We find that 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. Rather than following the diversified portfolio approach, they follow investment strategies that focus on a limited number of firm features.",

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AU - Korkeamäki, Timo

AU - Virk, Nader

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N2 - We analyze preferences of foreign institutional investors in the Chinese stock market in a sample that covers 2003 to 2014. We find that 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. Rather than following the diversified portfolio approach, they follow investment strategies that focus on a limited number of firm features.

AB - We analyze preferences of foreign institutional investors in the Chinese stock market in a sample that covers 2003 to 2014. We find that 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. Rather than following the diversified portfolio approach, they follow investment strategies that focus on a limited number of firm features.

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KW - Institutional investor

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Learning Chinese? The changing investment behavior of foreign institutions in the Chinese stock market

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