Reactions of the Hong Kong stock market to the publication of second-hand analysts' recommendation information

Article Abstract:

Analysts' recommendations reported in the Securities Firms' Investment Analysis (SFIA) column of the Hong Kong Economic Journal do not result in abnormal profits after transaction costs for readers who trade at the Hong Kong Stock Market. The exception are buy recommendations which clearly stated that the stocks were appropriate for long-term investment. Moreover, buy (sell) recommendations in the SFIA do not lead to higher (lower) returns than normal at the outset, but lower (higher) returns than normal later on. Heavy trading was also noted in the days around the column's publication.

Financial analysis, Stock Exchange of Hong Kong Ltd.

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Market reactions to the Hong Kong trading suspensions: mandatory versus voluntary

Article Abstract:

There are two types of trading suspensions in Hongkong namely, the mandatory suspension, which is ordered by a regulatory body, and a voluntary suspension, which is requested by a listed company. Empirical research on the effects of trading halts revealed that trading volatility increases in the post-suspension period and post-suspension volatility is generally higher for mandatory suspensions. Furthermore, the research found that market reactions are sensitive to the announced reason for the suspension.

Analysis, Securities, Hong Kong, Financial markets

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Do stock market investors overreact?

Article Abstract:

A study was conducted to test the stock market overreaction hypothesis (ORH). This hypothesis holds that past stock price performance should make price reversals predictable if prices systematically exceed their bounds following too much investor optimism or pessimism. The study examined time-varying risk as a possible explanation for the ORH. The findings provide evidence in favor of this hypothesis.

Prices and rates, Stocks, Stock prices, Investors

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