Open AccessAn Empirical Study on the Stock Price Volatility of Small and Medium Enterprise Board in China
Author(s) -
Qishui Chi,
Jieyi Huo
Publication year - 2017
Publication title -
research in world economy
Language(s) - English
Resource type - Journals
eISSN - 1923-399X
pISSN - 1923-3981
DOI - 10.5430/rwe.v8n2p12
Subject(s) - volatility (finance) , monetary economics , china , economics , stock (firearms) , stock market , offset (computer science) , capital market , business , financial economics , finance , mechanical engineering , paleontology , horse , political science , computer science , law , biology , programming language , engineering
This article utilizes structural change method to examine the fluctuation characteristics of stock prices of China’s small and medium enterprises. This study indicates that time series of Chinese small and medium-sized enterprises stock prices are not characterized by mean reversion. Therefore, the policy bailouts in the market including the rescue package of the government in June 2015 are ineffective because they are offset by other factors. The long-run growth of stock prices depends on the supply and demand situation in capital market as well as the growth of national economy but has no connection with the policy bailouts.