“Learning Chinese? The changing investment behavior of foreign institutions in the Chinese stock market”

“Learning Chinese? The changing investment behavior of foreign institutions in the Chinese stock market”

Timo Korkeamäki, Nader Virk, Haizhi Wang & Peng Wang

BOFIT Discussion Papers 19/ 2018

Korkeamäki et al. analyze preferences of foreign institutional investors in the Chinese stock market in a sample that covers 2003 to 2014. They find 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.