The dynamic relationship between stock returns and market turnover : evidence from Shanghai, Shenzhen and Hong Kong

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Abstract

This paper investigates the dynamic relationship between stock returns and market turnover for the Chinese and Hong Kong stock markets. The study finds strong evidence of a contemporaneous V-shaped relationship between stock returns and market turnover for all markets. There appear to be few direct links between Hong Kong and the Chinese markets. In contrast with the existing literature, however, there is evidence of substantial indirect one-way spillovers from Hong Kong to the Chinese markets.
Original languageEnglish
Pages (from-to)18-41
JournalAsia Pacific Journal of Economics and Business
Volume7
Issue number1
Publication statusPublished - 2003

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