Is Stock Price Rounded for Economic Reasons in the Chinese Market

• المؤلفون الرئيسيون: HE, Yan, WU, Chunchi
• التنسيق: text
• اللغة: English
• منشور في: Institutional Knowledge at Singapore Management University 2006
• الموضوعات: Price rounding; Price clustering; Emerging markets; Decimal trading; Chinese markets; Bid-ask spreads; Finance and Financial Management; Portfolio and Security Analysis
• الوصول للمادة أونلاين: https://ink.library.smu.edu.sg/lkcsb_research/827; https://ink.library.smu.edu.sg/context/lkcsb_research/article/1826/viewcontent/Stock_price_rounded_Chinese_2006_av.pdf
• المؤسسة: Singapore Management University

This paper investigates whether trading and quoting prices are rounded for both economic and cultural reasons on the Shanghai and Shenzhen Stock Exchanges in China. We find that the close, bid, and ask prices of domestic shares are rounded to the nearest 10s and 5s for economic reasons, and the last...