Inflation And The Subsequent Timing Of The Chinese Stock Market

This paper examines market-timing strategies based on inflation in a sample of three stock market indices drawn from the Shanghai and the Shenzhen Stock Exchanges between February 2002 and May 2010. Specifically, this study investigates the effectiveness of market-timing activity and its stabilit...

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Main Authors: Hui , Hong, O'Brien, Fergal, Ryan, James
Format: Article
Language:English
Published: Asian Academy of Management (AAM) 2014
Subjects:
Online Access:http://eprints.usm.my/40022/
http://eprints.usm.my/40022/1/AAMJAF_10-2-2_%2813-35%29.pdf
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author Hui , Hong
O'Brien, Fergal
Ryan, James
author_facet Hui , Hong
O'Brien, Fergal
Ryan, James
author_sort Hui , Hong
building USM Institutional Repository
collection Online Access
description This paper examines market-timing strategies based on inflation in a sample of three stock market indices drawn from the Shanghai and the Shenzhen Stock Exchanges between February 2002 and May 2010. Specifically, this study investigates the effectiveness of market-timing activity and its stability over time when using inflation. Consistent with previous studies, the results reveal significantly strong information conveyed through inflation in helping investors earn profits in excess of a buy-and-hold strategy. The nature of the information and the subsequent importance of the corresponding market-timing activity change over time, providing new evidence of timevarying investment opportunities in the Chinese stock market. The results of this study imply that the Chinese stock market has predictable components that can be exploited using information on inflation. However, this practice might experience time variations in a real-time framework, which draws investors' attention to asset allocation under economic uncertainty.
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spelling usm-400222018-04-11T03:55:11Z http://eprints.usm.my/40022/ Inflation And The Subsequent Timing Of The Chinese Stock Market Hui , Hong O'Brien, Fergal Ryan, James HD28-70 Management. Industrial Management This paper examines market-timing strategies based on inflation in a sample of three stock market indices drawn from the Shanghai and the Shenzhen Stock Exchanges between February 2002 and May 2010. Specifically, this study investigates the effectiveness of market-timing activity and its stability over time when using inflation. Consistent with previous studies, the results reveal significantly strong information conveyed through inflation in helping investors earn profits in excess of a buy-and-hold strategy. The nature of the information and the subsequent importance of the corresponding market-timing activity change over time, providing new evidence of timevarying investment opportunities in the Chinese stock market. The results of this study imply that the Chinese stock market has predictable components that can be exploited using information on inflation. However, this practice might experience time variations in a real-time framework, which draws investors' attention to asset allocation under economic uncertainty. Asian Academy of Management (AAM) 2014 Article PeerReviewed application/pdf en http://eprints.usm.my/40022/1/AAMJAF_10-2-2_%2813-35%29.pdf Hui , Hong and O'Brien, Fergal and Ryan, James (2014) Inflation And The Subsequent Timing Of The Chinese Stock Market. Asian Academy of Management Journal of Accounting and Finance, 10 (2). pp. 1-23. ISSN 1823-4992 http://web.usm.my/journal/aamjaf/10-2-2-2014.html
spellingShingle HD28-70 Management. Industrial Management
Hui , Hong
O'Brien, Fergal
Ryan, James
Inflation And The Subsequent Timing Of The Chinese Stock Market
title Inflation And The Subsequent Timing Of The Chinese Stock Market
title_full Inflation And The Subsequent Timing Of The Chinese Stock Market
title_fullStr Inflation And The Subsequent Timing Of The Chinese Stock Market
title_full_unstemmed Inflation And The Subsequent Timing Of The Chinese Stock Market
title_short Inflation And The Subsequent Timing Of The Chinese Stock Market
title_sort inflation and the subsequent timing of the chinese stock market
topic HD28-70 Management. Industrial Management
url http://eprints.usm.my/40022/
http://eprints.usm.my/40022/
http://eprints.usm.my/40022/1/AAMJAF_10-2-2_%2813-35%29.pdf