Learning Chinese? The changing investment behavior of foreign institutions in the Chinese stock market
Date
2019-07Author
Korkeamäki, T
Virk, Nader
Wang, H
Wang, P
Subject
Foreign investor Institutional investor Qualified foreign institutional investor (QFII) scheme China
Metadata
Show full item recordAbstract
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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Publisher
Elsevier
Journal
International Review of Financial Analysis
Volume
64
Pagination
190-203
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