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Textual analysis for China’s financial markets: a review and discussion

Alan Huang (University of Waterloo, Waterloo, Canada)
Wenfeng Wu (Antai College of Economics and Management, Shanghai Jiao Tong University, Shanghai, China)
Tong Yu (Department of Finance, Lindner College of Business, University of Cincinnati, Cincinnati, Ohio, USA)

China Finance Review International

ISSN: 2044-1398

Article publication date: 8 October 2019

Issue publication date: 22 January 2020

953

Abstract

Purpose

This is a literature survey paper. The purpose of this paper is to focus on the latest developments in textual analysis on China’s financial markets, highlighting its differences from existing works in the US markets.

Design/methodology/approach

The authors review the literature and carry out an experiment of sentiment analysis based on a small sample of Chinese news articles.

Findings

Based on the experiment of sentiment analysis, there is limited evidence on the association between sentiment and other contemporaneous or future returns.

Originality/value

The supply of financial textual information has grown exponentially in the past decades. Technological advancements in recent years make the programming-based analysis an effective tool to digest such information. The authors highlight the use of credible textual information and discuss directions of research in this important field.

Keywords

Acknowledgements

The authors thank the excellent research assistance provided by Joey Bao. Part of the work is completed while Huang was visiting Shanghai Jiao Tong University. The authors acknowledge financial support from the National Natural Science Foundation of China (Nos 71790592; 71850010) and Shanghai Institute of International Finance and Economics.

Citation

Huang, A., Wu, W. and Yu, T. (2020), "Textual analysis for China’s financial markets: a review and discussion", China Finance Review International, Vol. 10 No. 1, pp. 1-15. https://doi.org/10.1108/CFRI-08-2019-0134

Publisher

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Emerald Publishing Limited

Copyright © 2019, Emerald Publishing Limited

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