We explore the link between momentum and retail investing via an identification strategy in China, where retail investors dominate. We propose that due to a round lot restriction, small retail investors are less likely to hold and trade stocks with high nominal prices, and find supporting evidence.
China’s political leadership recently committed to expanding the proportion of middle-income groups to create a less polarised, and more ‘olive-shaped’, distribution of wealth. This column considers the potential trade-offs between reducing income polarisation and other goals, including poverty reduction.
We developed an SOE index for all 40 million firms in China from 1990 to 2017 based on the dynamic EquiNet. This quantitative index is solely based on equity investments and thus clears up the mysteries of other self-report measures.
How do women’s marriage and fertility decisions respond to trade liberalization? This column finds that Chinese prefectures more exposed to the US granting of permanent normal trade relations to China have experienced a relative increase in the fraction of unmarried young women and young women without children.
This paper provides new estimates of the housing stock, construction rates, and price developments by city tier in China.