Modelling the Behaviour of Technicians and Fundamentalists in the Shanghai Stock Market
This paper provides empirical evidence on the role of fundamentalists and technicians in the Chinese stock market. Three econometric models are used to differentiate the stock price effect between the actions of traders who act on the basis of fundamental analysis and those acting on the basis of te...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Universiti Utara Malaysia
2009-08-01
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| Series: | The International Journal of Banking and Finance |
| Subjects: | |
| Online Access: | https://www.e-journal.uum.edu.my/index.php/ijbf/article/view/8387 |
| _version_ | 1797958186011983872 |
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| author | Imad Moosa Larry Li |
| author_facet | Imad Moosa Larry Li |
| author_sort | Imad Moosa |
| collection | DOAJ |
| description | This paper provides empirical evidence on the role of fundamentalists and technicians in the Chinese stock market. Three econometric models are used to differentiate the stock price effect between the actions of traders who act on the basis of fundamental analysis and those acting on the basis of technical analysis. The models are estimated using randomly selected monthly and daily data on the stock prices of one hundred companies listed on the Shanghai Stock Exchange. The results reveal that both fundamentalists and technicians have roles to play in stock price formation, although technicians appear to play a more important role. This result holds even if the government intervention is allowed for. Some explanations are presented for the dominance of technicians.
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| first_indexed | 2024-04-11T00:15:24Z |
| format | Article |
| id | doaj.art-74ff86334a594d0ea32359ec0840401e |
| institution | Directory Open Access Journal |
| issn | 2811-3799 2590-423X |
| language | English |
| last_indexed | 2024-04-11T00:15:24Z |
| publishDate | 2009-08-01 |
| publisher | Universiti Utara Malaysia |
| record_format | Article |
| series | The International Journal of Banking and Finance |
| spelling | doaj.art-74ff86334a594d0ea32359ec0840401e2023-01-09T03:08:39ZengUniversiti Utara MalaysiaThe International Journal of Banking and Finance2811-37992590-423X2009-08-0162Modelling the Behaviour of Technicians and Fundamentalists in the Shanghai Stock MarketImad Moosa0Larry Li1Monash UniversityLatrobe UniversityThis paper provides empirical evidence on the role of fundamentalists and technicians in the Chinese stock market. Three econometric models are used to differentiate the stock price effect between the actions of traders who act on the basis of fundamental analysis and those acting on the basis of technical analysis. The models are estimated using randomly selected monthly and daily data on the stock prices of one hundred companies listed on the Shanghai Stock Exchange. The results reveal that both fundamentalists and technicians have roles to play in stock price formation, although technicians appear to play a more important role. This result holds even if the government intervention is allowed for. Some explanations are presented for the dominance of technicians. https://www.e-journal.uum.edu.my/index.php/ijbf/article/view/8387Technical analysisFundamentalistsShare pricesShanghai exchangeGovernment intervention |
| spellingShingle | Imad Moosa Larry Li Modelling the Behaviour of Technicians and Fundamentalists in the Shanghai Stock Market The International Journal of Banking and Finance Technical analysis Fundamentalists Share prices Shanghai exchange Government intervention |
| title | Modelling the Behaviour of Technicians and Fundamentalists in the Shanghai Stock Market |
| title_full | Modelling the Behaviour of Technicians and Fundamentalists in the Shanghai Stock Market |
| title_fullStr | Modelling the Behaviour of Technicians and Fundamentalists in the Shanghai Stock Market |
| title_full_unstemmed | Modelling the Behaviour of Technicians and Fundamentalists in the Shanghai Stock Market |
| title_short | Modelling the Behaviour of Technicians and Fundamentalists in the Shanghai Stock Market |
| title_sort | modelling the behaviour of technicians and fundamentalists in the shanghai stock market |
| topic | Technical analysis Fundamentalists Share prices Shanghai exchange Government intervention |
| url | https://www.e-journal.uum.edu.my/index.php/ijbf/article/view/8387 |
| work_keys_str_mv | AT imadmoosa modellingthebehaviouroftechniciansandfundamentalistsintheshanghaistockmarket AT larryli modellingthebehaviouroftechniciansandfundamentalistsintheshanghaistockmarket |