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- W3125898740 abstract "China launched a pilot scheme in March 2010 to lift the ban on short-selling and margin-trading for stocks on a designated list. We find that stocks experience negative returns when added to the list. After the ban is lifted, price efficiency increases while stock return volatility decreases. Panel data regressions reveal that intensified short-selling activities are associated with improved price efficiency. Short-sellers trade to eliminate overpricing by selling stocks with higher contemporaneous returns following a downward trend, and their trades predict future returns. In contrast, we find intensified margin-trading activities for stocks with lower contemporaneous returns, and these trades have no return predictive power." @default.
- W3125898740 created "2021-02-01" @default.
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- W3125898740 date "2014-11-01" @default.
- W3125898740 modified "2023-10-12" @default.
- W3125898740 title "Short-selling, margin-trading, and price efficiency: Evidence from the Chinese market" @default.
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- W3125898740 doi "https://doi.org/10.1016/j.jbankfin.2013.10.002" @default.
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