China stock price reactions to financial announcements: evidence from segmented markets

Abstract

This paper examines empirically Chinese stock price reactions to financial announcements for 2002. We find that B share prices react more strongly to negative financial announcements than A shares. The announcements can lead to excess returns. One explanation is that the markets are segmented by the inconvertibility of China’s currency, as well as by the structural change of investors. Meanwhile China listed companies need to improve their transparency and disclosure.

Citation

Huang, X. (2004), "China stock price reactions to financial announcements: evidence from segmented markets", Managerial Finance, Vol. 30 No. 3, pp. 62-73. https://doi.org/10.1108/03074350410768976