Empirical Research on the Discount of Chinese Closed-End Funds - Rational Expectations or Noise Trading: Rational Expectations or Noise Trading

Author: Wang Qing
Publisher:
Publish Date: 2005-12-01
Features: Based on a comparative analysis of the different research findings of foreign scholars on the discount phenomenon of Western mature market funds, this book conducts an empirical analysis of the rational expectation component and noise trading component of the discount of Chinese closed-end funds from the perspectives of mainstream finance and behavioral finance. It provides intuitive empirical evidence for further research on behavioral asset pricing models in the context of the Chinese market. The debate between rational expectations and noise trading ultimately revolves around different answers to the question of market efficiency. Exploring the fundamental reasons behind the discount phenomenon of closed-end funds holds significant theoretical implications for verifying market efficiency. Additionally, the study of the discount phenomenon of closed-end funds reflects the impact of the strategic interactions among fund investors, fund managers, and fund regulators on the market. This has substantial practical significance for seeking solutions to the standardized development of the fund market and even the securities market. Combining the characteristics of the Chinese securities market as an emerging market, this book analyzes the institutional and market reasons behind the discount of Chinese funds from the perspective of a transforming economy. It reveals some deep-seated issues in policy environments and market system construction, offering valuable practical references for standardizing market development and enhancing market efficiency.