Margin Trading System and Pricing Efficiency: Evidence from the Chinese Market

DOI

10.2991/meess-18.2018.39How to use a DOI?

Keywords

Margin Trading System; Price Efficiency; DID.

Abstract

The Margin Trading System is a new creative credit trading system, which was first put into practice in Chinese market in 2010. It is the first time for China to bring in the short selling, which effects have been considered controversially in academics. The paper uses the data of the pilot period, which is 3 months before and after March 31th, 2010 and the fifth expansion period, which is 3 months before and after the December 12th, 2016. Consequently, we get the following conclusions: (1) during the two periods, the Margin Trading System insignificantly increases the price efficiency of the underlying stocks. (2) The stocks with high turnover rate and high price earnings ratio would be affected relatively more by the policy.

Copyright

© 2018, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Zixin Xu
PY  - 2018/08
DA  - 2018/08
TI  - Margin Trading System and Pricing Efficiency: Evidence from the Chinese Market
BT  - Proceedings of the 2018 International Conference on Management, Economics, Education and Social Sciences (MEESS 2018)
PB  - Atlantis Press
SP  - 197
EP  - 204
SN  - 2352-5398
UR  - https://doi.org/10.2991/meess-18.2018.39
DO  - 10.2991/meess-18.2018.39
ID  - Xu2018/08
ER  -