Impacts of Internet Stock News on Chinese Stock Markets

The research of impacts of the intemet stock news （ISN） on the Chinese stock markets emerges with the era of the popular usage of the intemet. In this paper, the ISN is empirically related to the stock returns based on the neural networks. Experiments demonstrate the probable relations, hinted by the neural networks. The results are helpful in probing the microstructure of the Chinese stock markets.     

Stock Returns, Volatility, and Cointegration among Chinese Stock Markets

I. IntroductionA plethora of research has focused on therelationship between returns and volatility, andcointegration among major, well-established financial markets. It has been found that aninverse relationship exists between an individualfirm’s stock return volatility and itsstockprice. There are two popular explanations: the first one is related to the leverage effect. Itasserts that a decrease in afirm’s stock price increases the firm’s debt ratio (or decreasesthefirm’s equity ratio)…     

Seasonal Effect in Stock Market： Evidence from the Chinese Stock Exchange

In recent years, financial economists have provided much evidence of regularities in security market returns, and consequently the notion of market efficiency has been questioned. In this paper, seasonal effects are tested for the stock returns of Chinese A-share price index covering the period 1997-2005. The empirical research is conducted by using the conventional linear regression model. Finally the results obtained in this paper confirm the existence of the February effect and no evidence support for the day-of-the-week effects, and therefore these results provide some support of the informational efficiency aspect of the market efficiency.     

Transparency of China‘s Stock Market

Ⅰ. Transparency and Truthfulness: Theoretical BackgroundAccording to information restriction theory devel-oped by Stiglitz, the 2001 Nobel Prize winner ofeconomics, transparency can raise market efficiencyand reduce trading cost.The past economics theory     

Study on Correlation between Stock Dividends and Sustainable Growth——Evidences from China A-share Stock Markets

Foreign literatures on stock dividends mostly based on signaling hypothesis and optimum price zone hypothesis. In our country, studies on stock dividends focused on two fields： signaling effect and influencing factors. Few researcher studied correlation between stock dividends and sustainable growth. According to growth management theory, we carry out statistical tests on stock dividends in China A-share stock market by using 345 listed companies that had only distributed stock dividends from 1993 to 2001 as total sample. The result indicates that there is a high correlation between stock dividends and sustainable growth rate. Listed companies pay out stock dividends basing on their development. It consists with the sustainable growth theory.     

China＇s Stock Market： Inefficiencies and Institutional Implications

The dramatic movements of China＇s stock market in the past two and a half years have renewed debate among academics over the efficiency of China＇s stock market. The present paper tests the efficiency of China＇ s stock market. The realization of efficient markets requires the effective operation of a complete set of macro and micro mechanisms. However, such mechanisms are not only incomplete in China＇ s stock market, but are also ineffective because of the prevalence of institutional deficiencies.     

Study on Application of Conflict Analysis in Chinese Stock Market

Joint-stock form will be the main direction of state owned enterprise reforming in China. The essence of joint stock form is to separate into three authorities, that is, power of decision, power of execution and power of supervision. Different department, so as to control and restrict each other, undertake these three powers. But during the procession, there exist contradictions inevitably. This paper focuses on using conflict analysis to solve this problem, offers modular, and gets the result.     

Research on the Stock Price Transmission of China＇s Monetary Policy

With the further development of the economic reform of China, the stock price in the monetary policy transmission deserves more and more attention of the experts and the scholars. This paper studies the stock price transmission theory in the monetary policy transmission, analyzes the problems of the stock price transmission in China, and in the end, puts forward some advice on policy for the purpose of exerting effectively the influence of China＇s stock price in the monetary policy transmission.     

Probe into the Perfection of Property Right System of Joint Stock Commercial Banks

Joint stock commercial banks are financial microcosmic main bodies which need to be shaped in the reform of our financial system. It is very important to standardize property right organization and establish perfect property right system of joint stock commercial bank. In this paper, the traits of property right system of joint stock commercial bank and main problems in it are elaborated. Countermeasures and measures about how to perfect property right system of our country＇s joint stock commercial banks are advanced after the analysis of the cause of existent problems.     

High-tech IT Industry Stock Valuation System： Future Development Potential Method （FDPM）

Concentrating on the differences between the high-tech IT industry and the traditional ones, the paper tries to set up a new stock valuation system, the core of which is the Future Development Potential Method （FDPM）. In this theory, there are five main factors of the FDPM, including： 1, Soft resources; 2. Industry background information; 3. Core competitive power; 4. Profit-making power; 5. Development prospect.     

A Proposal for Progressively Integrating Illiquid Shares and Liquid Shares in Chinese Stock Markets

This paper classifies the market barriers which cause the division of the Chinese stock markets into two categories： the barriers for trading across markets and the barriers for capital transference across markets. It critically reviews various plans and Chinese historical practices which aimed to remove the barriers, and brings forward a proposal for progressively integrating illiquid shares and liquid shares in Chinese stock markets.     

Pricing Shares on a Nascent Market: The Nepal Stock Exchange 1994–96

Stimulated by their ability to facilitate privatization and to attract portfolio inflows, recent literature on less-developed country (LDC) stock exchanges has focused on relatively well-established “emerging markets.” Wide international variations in the ratio of market capitalization to GDP, however, confirm that an important role for equity markets in economic development is not assured. This study of early equity pricing in Nepal therefore addresses the initial difficulties of establishing a viable exchange. It investigates equity pricing in the absence of a trading history, identifies favored equity characteristics and provides tentative evidence on the market valuation of liquidity before discussing policy inferences.     

The Buffer Stock Model Redux? An Analysis of the Dynamics of Foreign Reserve Accumulation

Cointegration analysis suggests that the buffer stock precautionary model accounts for the optimal reserve demand in nine developing countries located in Asia and Latin America. The corresponding VECMs are further interpolated, using the permanent and transitory innovation decomposition procedure, in order to assess the relative impact of the time series on the convergence to equilibrium after a shock. Finally the (asymmetric) effect on the speed of convergence of positive/negative changes in signal variables—such as the excess reserves of the previous period, relative competitiveness and US monetary stance—is found to be significant, in line with mercantilistic and fear of floating motives for hoarding reserves.     

Can price limits help when the price is falling? Evidence from transactions data on the Shanghai Stock Exchange

We use transactions data to explore the magnet effects of price limit rules on the Shanghai Stock Exchange (SHSE). When limit hits are imminent, stock prices are found to approach the price limits at faster rates, with higher trading intensity and larger price variation, supporting the magnet effect hypothesis of Subrahmanyam [Subrahmanyam, A., 1994. Circuit breakers and market volatility: A theoretical perspective. Journal of Finance, 49, 237–254.]. Moreover, when stock prices approach the floor limits, we observe lower than normal market conditions’ trading volume and trade size but a wider spread. The panic selling psychology of individual investors for fear of illiquidity and the strategic trading decisions of discretionary traders during periods prior to price limit hits at the floors are conjectured as possible explanations for the observed price behaviors. Post-limit-hit analysis reveals evidence of delayed price discovery at the ceiling limit but price reversal at the floor.     

Financing Alternatives for Chinese Small and Medium Enterprises： The Case for a Small and Medium Enterprise Stock Market

Financing alternatives for small and medium enterprises in China are discussed in the present study. In particular, we analyze the significant changes and developments in China s “second board” stock market. China s extensive network of regional assets and equity exchanges, which were set up to facilitate private equity transfer, and non‐performing loan transactions seem to partially fill the void for small and medium enterprises, which cannot easily obtain approval for listing on the stock exchanges. Foreign investors can identify investment opportunities in non‐listed domestic state‐owned and private businesses through these regional assets and equity exchanges. At the same time, foreign stock markets are now attracting the young Chinese enterprises to list their stocks on their exchanges. (Edited by Zhinan Zhang)     

Indonesia's Ascent on the Technology Ladder: Capital Stock and Total Factor Productivity in Indonesian Manufacturing, 1975–95

This paper presents new capital stock estimates for mium and large-scale manufacturing in Indonesia using the Perpetual Inventory Method. Capital stock grew gradually during 1975–88, at an annual rate of 7.6%, then boomed during 1989–95 at 13.6% per annum. Growth accounting shows that 60% of the rapid growth of manufacturing output during the period 1975–95 was due to capital input growth, 18% to labour input growth and the remaining 22% to total factor productivity (TFP) growth. There is no evidence of a shift of factor inputs towards more efficient industries. TFP growth averaged 3% annually in 1975–95. Performance varied greatly across industries, but the policy changes that have taken effect since 1986 have definitely been beneficial for all industries. Put in an international perspective, however, Indonesia's TFP levels show no signs of catch-up with the world frontier.