Chinese Market Research Articles

Analysis of the influencing factors of emission trading price in China

China established pilot carbon markets in 2013. In 2020, it set targets for carbon peaking in 2030 and carbon neutrality by 2050. China’s national carbon market officially commenced operations in 2021. Based on the national market and seven pilot markets, this study established the factors influencing carbon trading prices by examining market participants, macroeconomics, energy prices, carbon prices in other markets, etc. Asymmetrical development among the seven pilot cities, for which the study employed a mixed-effects model, was the primary factor impacting carbon prices. The carbon prices in the pilot cities cannot be extrapolated to the entire country. In the national carbon market, where the study employed a multiple regression lag model, the SSE index was positively correlated with carbon prices, whereas the Dow Jones index had no significant effect on carbon prices in terms of macroeconomics. Coal and natural gas prices were negatively correlated with carbon prices, whereas oil prices were positively correlated with energy prices. The EU market prices have a positive correlation with prices in other markets. The significance of this study is that it covers the largest national Emissions Trading System (ETS) in the world and allows for comparing the characteristics of the Chinese market with those of other ETS markets. Additional studies, including more sectors, should be conducted as China’s ETS coverage increases.

Research on Problems and Solutions of Quantitative Investment in the Chinese Market

Quantitative investment has gradually become increasingly important in the Chinese finance market in recent decades. It improves the efficiency of investment, reduces the risk of investment, enhances the liquidity of some market assets and provides new opportunities to accumulate wealth for investors. As a new investment method, it raises some problems which lead to the turmoil of the market when it keeps developing and gaining traction. This paper will review the current situation of quantitative investment in the Chinese market from its development history and the sizes of funds. This study shows that there are mainly four problems existing in the application of quantitative investment in China. Listed below are problems. The evident government intervention in the market has a negative impact on the fitting effectiveness of quantitative models. Some kinds of assets and commodities face poor liquidity and for them, quantitative investment strategies can hardly be conducted accurately. The accuracy of quantitative analysis can be unreliable for the financial data is sometimes incomplete and unreliable in the Chinese market. The high-frequency trading affects the stability of the whole market because of lack of market supervision. This paper also puts forward relevant countermeasures and suggestions according to these problems. This study has great significance to the healthy development of quantitative investment in the Chinese market.

A Pilot Study of E-Commerce Consumers' Green Purchasing Intention in China: TPB Perspective

The frequent occurrence of environmental accidents and the heightened awareness of environmental protection among citizens have led to the emergence of green consumption as a social phenomenon. As a major global e-commerce market, Chinese consumers' green purchasing intention contributes significantly to environmental protection. The present study sought to develop pertinent scales utilizing the Theory of Planned Behaviour (TPB), with questionnaires employed to assess the influence of attitudes (A), subjective norms (SN), and perceived behavioral control (PBC) on Chinese e-commerce consumers' green purchasing intention (GPI). A total of 88 valid questionnaires were collected for the pilot study. The results indicated that the kurtosis's magnitude for all latent variables is less than 2, while the magnitude of the skewness is less than 1. This signifies that the data results have successfully passed the normality test. Furthermore, the Cronbach's alpha value and KMO for all variables exceeded 0.8, indicating high internal consistency. The total variance explained (TVE) surpassed 50%, demonstrating a substantial amount of variability accounted for. Additionally, the composite reliability (CR) was higher than the threshold. The value was higher than 0.8, and the average variance extracted (AVE) exceeded 0.5. This demonstrates that the questionnaire successfully underwent reliability and validity assessments. The findings of the pilot study have contributed to the advancement of research in the field of green consumption, offering insights into the prediction of green purchase intentions among Chinese e-commerce consumers.

Interactive effects of trust in government information and perceived value on Chinese consumers' actual purchasing behavior toward contaminated seafood

Previous studies have separately examined the roles of trust in government information and perceived value in consumer food choices; however, the interactive effects of trust in government information and perceived value remain unknown. Therefore, this study explores the joint effects of trust in government information and perceived value on shaping consumers' actual food purchase behavior after food contamination. A logit model was used to estimate the interactive effects. The results from a sample of 710 Chinese consumers indicated that a lack of trust continues to make consumers concerned about the safety of seafood, which, together with the spread of internet rumors, leads to the fact that trust in government information does not directly affect consumers' actual purchase behavior. However, it can also indirectly influence purchase behavior through perceived risks and benefits. Specifically, trust in government information reduces risk perception among low-income consumers and enhances benefit perception among low-risk city consumers, thus enhancing purchasing behavior. Moreover, we find city heterogeneity in its impact on consumer purchasing behavior. Specifically, in low-risk cities, it significantly promotes consumer purchasing behavior, however, in high-risk cities, it does not directly affect consumer purchasing behavior. Overall, trust in government information does not directly affect consumer purchasing behavior. Perceived value is a key factor affecting consumer purchasing behavior. An interactive effect exists between trust in government information and perceived value on consumer purchasing behaviors. These results highlight the role of perceived value in amplifying the effects of trust in government information. These findings have significant implications for seafood producers and policymakers. Effective strategies should encompass both the provision of perceived value and the cultivation of trust in government information to promote consumer choices of contaminated food.

Is there an intraday reversal effect in commodity futures and options? Evidence from the Chinese market

Based on the high-frequency data of China's commodity futures and options markets from 2017 to 2022, this article examines the intraday effect of China's commodity futures and options. The research of this article found that China's commodity futures and options have significant intraday reversal effects, and the overnight opening factor and intraday momentum factor are more significant. In addition, this article tests the cross-predictive ability of futures and options. The tests found that futures have a strong cross-predictive ability for options, while the cross-predictive ability of options to futures is weak. In response to this phenomenon, several tests are conducted. We consider the market makers' Gamma Hedge behavior, Vega Hedge behavior, and liquidity as factors. Our novel evidence indicates that all these aforementioned are related to the intraday reversal effect in the Chinese market.

Revitalising Packaging Design of Children Food Brand for Marketing Strategy in China

This study examines the revitalization of packaging design for a children's food brand as a strategic tool for effective marketing in the Chinese market. With a focus on the dynamic landscape of consumer preferences and behaviors, this research underscores the significance of packaging design in capturing the attention of young consumers and their parents. By amalgamating culturally resonant elements with contemporary design trends, the study endeavors to uncover strategies that enhance brand visibility and engagement. The Chinese market, characterized by its rapid changes and distinct cultural nuances, necessitates a nuanced approach to packaging design. This study delves into the visual, sensory, and emotional aspects of packaging that contribute to brand perception. Through the analysis of case studies and consumer surveys, it elucidates the crucial role of colors, imagery, typography, and material choices in eliciting positive associations and fostering brand loyalty. The study recognizes the power of storytelling through packaging design. Children's food brands can leverage culturally relevant narratives and characters to establish an emotional connection with young consumers and their parents. This narrative-driven approach not only enhances brand recognition but also aligns with the Chinese value of family-oriented decision-making. This research highlights the strategic importance of packaging design in the context of children's food brands' marketing endeavors in China. By bridging the gap between cultural resonance and contemporary aesthetics, brands can create a lasting impact on consumers' minds. As consumer behaviors continue to evolve, an adept packaging design strategy can prove instrumental in navigating this dynamic landscape and achieving sustained market success.

Research on Impact of Investor Sentiment on Chinese Stock Market: Review and Prospect

Over time, investor behavior has become more complicated due to the unpredictability of the Chinese stock market. Major research has found that investor sentiment swings have a huge impact on the market. Therefore, investors need to observe and understand how investor sentiment affects the market in the right way. Much of the past literature has used textual data mining and event analysis to measure the impact of investor sentiment and its impact on stock market returns, pricing, and volatility. Several articles have concluded that investor sentiment is highly responsive to the Chinese stock market. Another phenomenon that has emerged on various forums and social media is that people's fear of the stock market is spreading. The results of event analysis can prove that the impact of events such as the lifting of the ban on restricted shares and the listing of companies will be very obvious and have an impact on investor sentiment. An important implication of this study is that in addition to the dominant role of Granger causality in the causality that produces negative returns, negative investor sentiment is the main factor determining the overall behavior of the stock market. When bad news breaks, investors release their pent-up emotions for a short period, resulting in a violent reaction. In addition, market sentiment can also affect trading volumes and stock prices. This has put pressure on the market. In the end, this paper expands the future research direction from the two aspects of communication mechanism and quantitative analysis.

An Empirical Research on the Performance of Asset Pricing Models in the Chinese A-Share Market

Asset pricing remains a cornerstone of financial field, providing a framework to understand the anticipated returns of asset portfolios and individual assets. Its widespread application spans academic discourse and practical financial methodologies. This study conducts an empirical analysis of the Chinese A-share Market, utilizing transaction data from the A-share market spanning from 1994 to 2024. It examines the applicability of the traditional asset pricing models within the Chinese stock market. Through classic regression analyses of the CAPM, the Fama and French three-factor model (FF3), the Fama and French five-factor model (FF5), this study verifies that the FF5 provides a superior explanation of stock expectations for the A-share market during this period compared to other traditional asset pricing models. The conclusions of this study indicate that, among the CAPM, FF3, and FF5 models, the number of parameters taken into account by the model and its capacity to explain asset returns are positively correlated.

Is the Fama French model robust in the Chinese stock market?

Many previous studies have analyzed the different stock return models in various segments of the Chinese stock market. This essay analyzes the Fama-French five factors and three factors model in the main board, the second board, and STAR market. It finds that the three-factor models are efficient in all three markets expect for the STAR market, while the five-factor model is inefficient in testing the second board market alone and overall efficient in testing the mixed market and the STAR market. Furthermore, it is also found that the MKT factors are the most significant contributors to the portfolio excess return in all six situations. The HML and SML factors also exhibit constant relations with the portfolio return. Besides, it is found that HML and SMB factors are not significantly correlated with the stock’s performance on the STAR market. Overall, the relative efficiency of Fama French's three and five-factor model in explaining these markets is proved. Investors can use these two models to analyze the stock return and earn profit in the next period, and policymakers can also employ this model to understand the market and decide suitable fiscal and monetary policies.

The Application of Asset Pricing Models in the Capital Market

With the development of China's financial and capital markets, more and more investors will choose to use different asset pricing models to analyze the effectiveness of their investments. Under the background of efficient markets hypothesis (EMH), this paper will use Fama-French three-factor model, GARCH family model and Heston model to analyze the validity and feasibility of these three commonly used models in Chinese market. Through empirical analysis, descriptive statistics and other research methods, it is found that all three models are effective but have certain limitations. It is found that the Fama-French three-factor model is too dependent on the market. The establishment of the GRACH family model is too complicated due to too many influencing factors in the market; and the time lag of the Heston model. All three models require investors to include more model analysis to get the optimal investment strategy. Therefore, this paper draws the definition of behavioral finance at the end of the paper, according to which investors' decisions can be further analyzed.

An Empirical Study on the Retail Price Threshold of Pork in the Chinese Market

This study aimed to identify warning thresholds that can guide sellers in achieving reasonable profits while reducing buyer payment costs. Monthly price data from January 2009 to June 2023 and the two-regime threshold regression model were used for an empirical analysis of the asymmetric effects of the changes in household consumption under different pork price fluctuation levels to verify that the changes in household consumption have significant pork price fluctuation thresholds and threshold effects. It was found that as the fluctuation of pork prices approached the threshold, the temporary price-intervention policy (e.g., reference price) effect of adjusting prices diminished. An empirical analysis was conducted from the perspective of asymmetric effects of the upstream (feed and piglets), midstream (live pigs), and downstream (pork) of price transmission. The impacts of the products in the upstream and midstream of the industry chain on pork prices declined gradually, and among the products, the impact of the prices of feeds for fattening pigs on pork prices was found to be the weakest. Thus, the price intervention policy (e.g., reference price) based on the pork price threshold suggests that strengthening the supervision of the price fluctuations of midstream products (e.g., controlling the profit margin) when the pork price fluctuation is near the threshold (8.24%) would have more significant effects on all sides.

Research on Social and Cultural Stereotypes of Chinese Men in Hollywood Films: A Case Study of "The Mask of Fu Manchu"

To better penetrate the international market and gain a wider international audience, Hollywood has made films with rich and varied themes based on the cultures of various countries. Given China's rich cultural heritage and vast market, Hollywood has made many films set in China t open up the Chinese market and carry out cultural exchanges between China and the West. However, due to the misunderstanding between cultures, there are prejudices and stereotypes of Chinese men's society and culture in Hollywood films. This study applies the case study method in the qualitative research method and takes〈The Mask of Fu Manchu〉 film as a case study to systematically analyze Fu Manchu's external characteristics such as gender, t, and form, as well as internal characteristics such as behaviors and personalities. It is found that the Chinese male socio-cultural symbols in the film are oversimplified and culturally misinterpreted, leaving the audience with a stereotypical impression of cultural homogeneity. Based on this, this study explores multiple perspectives from history, culture, and art to find ways to eliminate stereotypes of Chinese men in Hollywood films, promote producers' understanding of different cultures, build a positive image of China, and provide a path for viewers to correctly understand Chinese culture.

Research on the Impact of China's Internet Financial Development on the Traditional Financial Industry

With the development of Internet technology, Internet finance was born. Internet finance has appeared in people's sight in a new business form, which has brought significant changes to people's lives. People no longer need to go to the banks or other financial institutions' operations to handle business in a tedious way. However, at the same time, the high efficiency and convenience brought by Internet finance has also had a certain impact on the traditional financial industry. This paper will explore this issue in depth with previous studies, especially in the Chinese market where the Internet penetration rate is high. The paper defines Internet finance and its characteristics, emphasizes its convenience, low operating costs and easy accessibility, and deeply analyzes the connection between Internet finance and traditional finance, and at the end of the paper, it puts forward some policies to deal with the problems faced by traditional finance. This paper points out that Internet finance and traditional finance are interdependent, and the growth of Internet finance is realized based on traditional finance. The emergence of Internet finance has challenged and transformed traditional financial services, prompting them to undergo a digital transformation to meet the evolving needs and expectations of consumers. This study comprehensively examines these dynamics and the continued evolution of financial services in the era of Internet finance.

China's Foreign Exchange Market: Research on Problems and Countermeasures

The foreign exchange derivative market plays a vital role in the global economy. As one of the world's largest economies, China has already recognized the significance of establishing a well-regulated foreign exchange market. However, the Chinese foreign exchange market still faces several challenges. There are four main challenges: regional disparities in development, low level of diversification, high market risks, and inadequate regulation. These issues should draw public’s further attention and get resolution. This paper aims to analyze the four problems above in China's foreign exchange derivatives market and propose feasible solutions, including alleviating the imbalance problem, strengthening market diversification, reducing information asymmetry and strengthening the government supervision, which help to address the identified problems. The research findings are also helpful for some market participants and policymakers to understand the shortcomings of China's foreign exchange derivatives market better, and thus designate more rigorous trading strategies and improve the environment for China's foreign exchange derivatives market.

A comparison of factor models in China

We evaluate the performance of eleven asset pricing models in the Chinese A-share market using a variety of test portfolios and statistical methodologies. To compile the test portfolios, we construct 105 anomalies and use the 23 significant anomalies as test assets for model comparison. The results indicate that, in time-series test and anomaly explanations, the Hou et al. (2019) five-factor q model demonstrates the best overall performance. The pairwise cross-sectional R2 tests and multiple model comparison tests further affirm that the Hou et al. (2019) five-factor q model, the Fama and French (2018) six-factor (FF6) model, and the Kelly et al. (2019) five-factor Instrumented Principal Component Analysis (IPCA5) model are the top performers. Notably, the performance of the five-factor q model remains robust across various experimental designs.

The Problems and Solutions in the Chinese Exchange Market

The Problems and Solutions in the Chinese Exchange Market

The Impact and Response of China's Capital Market Opening Policy on the Financial System

Due to the liberalization of the Chinese capital market in recent years, many foreign investors have entered the country's capital market. This article outlines the history and present state of China's relative policy, gathers and evaluates pertinent policies, examines the policy's turning points, and finally highlights the difficulties and issues at hand. Based on this, it examines how this act affects financial institutions and presents three arguments for why bringing in foreign money will strengthen the financial market's vibrancy, encourage its modernization, and increase its size. Drawing from the aforementioned analysis, this article puts forth a response strategy aimed at promoting financial institutions' risk control and institutional innovation through capital market liberalization. Additionally, it suggests that the state enhance its oversight of foreign capital inflows to ensure a consistent flow of capital. To sum up, as China's capital market becomes more open to the outside world, it will be important to take advantage of the chances for innovation and growth while also managing the risks and difficulties that come with it. This paper seeks to be able to offer pertinent recommendations for the market's continued development and liberalization.

A hybrid carbon price forecasting model combining time series clustering and data augmentation

Stable and accurate carbon price forecasts are crucial for carbon asset management and policy design. Therefore, various advanced models have been proposed to forecast carbon price, and decomposition–reconstruction models occupy a major position. On this basis, this study proposes an improved decomposition–reconstruction framework and constructs a novel hybrid forecasting model Informer-DA-BOHB-TVFEMD-CL. The hybrid model decomposes carbon price by TVFEMD to obtain different volatility characteristics and classifies these features by time series clustering, where the high-frequency components are retained and the low-frequency components are reconstructed. Then, the training set was expanded by the generative data augment technique to improve the model's generalization ability and avoid overfitting. Finally, the advanced deep learning model Informer and the hyperparameter optimization technique BOHB are used to model the training set, and the prediction results of each subcomponent are integrated to obtain the final prediction results. Experiments are conducted in EU-ETS, Guangdong, Hubei, and Chinese national carbon market. Experimental results show that the stability and prediction performance of the proposed hybrid model are better than those of the benchmark models, proving the applicability of the improved decomposition–reconstruction idea and the validity of the hybrid model. Meanwhile, the proposed model has demonstrated good profitability in carbon trading.

Portfolio Optimization Based on 9 Chinese Stocks

Geopolitical conflicts and the impact of the pandemic have triggered volatility and downward trends in the Chinese stock market, prompting investors to pay more attention to stabilizing returns and controlling risks through optimizing portfolios. This study selected nine stocks listed on the Shenzhen and Shanghai Stock Exchanges in China and first identified the efficient frontier composed of these nine stocks, then constructed portfolios with maximum Sharpe ratio and minimum volatility. The results indicate that China Yangtze Power Co., Ltd. holds the highest investment weight in all portfolios, followed by Kweichow Moutai Co., Ltd. which also holds significant weights in both portfolio types. By comparing the cumulative returns of the two portfolios with the HS300 index, it was found that the performance of all portfolios outperformed the benchmark index. This result can provide guidance for some investors in managing investments during this particular period of market downturn.

Impact of the Registration-Based System Reform on China's IPO Market

Implementing the registration-based system reform in China's IPO market from the pilot phase in 2019 to its full-scale execution in 2023 has yielded a surge of pertinent scholarly inquiries and attention from the capital market. This paper, beginning with the IPO market, analyzes relevant literature to explore the impacts of the registration-based system reform on the IPO market. By methodical arrangement and examination, it has been noted that the ongoing studies in China concerning the impact of the registration-based system on the Initial Public Offering sector are predominantly focused on four principal aspects: pricing effectiveness, the caliber of companies going public, costs associated with issuing shares, and the supervision by regulatory bodies. Ultimately, this paper synthesizes the findings from existing literature and proposes policy recommendations such as enhancing information disclosure, strengthening the Chinese capital market, and improving the mechanisms for short-selling of stocks. It also points out the deficiencies in current research.