Developing Short-Selling on the Mainland Chinese Equity Markets: Developing Short-Selling in China

Clunie, James; Ying, Tongshan

ISBN 10: 3836467844 / ISBN 13: 9783836467841

Published by VDM Verlag Dr. Müller, 2008

About this Item

Seller Inventory # ABLIING23Apr0316110073785

Bibliographic Details

• Title: Developing Short-Selling on the Mainland Chinese Equity Markets: Developing Short-Selling in China
• Publisher: VDM Verlag Dr. Müller
• Publication Date: 2008
• Language: English
• ISBN 10: 3836467844
• ISBN 13: 9783836467841
• Binding: Soft cover
• Condition: New

About this title

Synopsis

Short-selling is not currently permitted on the mainland Chinese stock exchanges, but is allowed in most other major stock markets. We review the theory and evidence on liquidity, price discovery and market efficiency associated with securities lending and short-selling. The evidence highlights a number of benefits and also risks associated with these practices. We describe the approaches taken by the Hong Kong and Taiwan stock exchanges to develop short-selling and build on this to generate ideas for the development of securities lending and short-selling in mainland China. We argue that a phased program of reform, well-implemented, can help build confidence in the mainland Chinese equity markets, by aiding price discovery and improving market liquidity. This work will be of interest to policy makers, regulators and investors in the Chinese equity markets.

About the Author

James Clunie is an Investment Director at Scottish Widows Investment Partnership in Edinburgh, Scotland. Tongshan Ying is Head of Custody at Bank of Communications, Shanghai, China.