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.
DOI
10.1016/j.irfa.2019.05.011
Publication Date
2019-07-01
Publication Title
International Review of Financial Analysis
Volume
64
Publisher
Elsevier
ISSN
1057-5219
Embargo Period
2024-11-19
First Page
190
Last Page
203
Recommended Citation
Korkeamäki, T., Virk, N., Wang, H., & Wang, P. (2019) 'Learning Chinese? The changing investment behavior of foreign institutions in the Chinese stock market', International Review of Financial Analysis, 64, pp. 190-203. Elsevier: Available at: https://doi.org/10.1016/j.irfa.2019.05.011
