09 Jun 2017
Presentation deck of CFA China Shanghai seminar - Stock Market Efficiency, Participants and Investment Delegation
In December 2016 CFA Institute supported the 29th Australasian Finance and Banking Conference by sponsoring two research awards in Banking / Finance / Investment Management in Asia-Pacific markets and the winner of the first prize goes to Yeguang Chi, associate professor of Shanghai Jiaotong University SAIF.
In addition to uploading Professor Chi’s winning paper “Private Information in the Chinese Stock Market: Evidence from Mutual Funds and Corporate Insiders”
onto ARX, to bridge the gap between academics and practitioners we have created a Practitioner’s Brief
, a short practitioner-focused digest of the research paper and an accompanying video edition
of that digest. The brief and video were well received and CFA China Shanghai decided to bring it to life by hosting the first o2o seminar on June 6.
During the event Professor Chi first illustrated the conditions of China’s stock market in terms of trading volume of retail investors and performance of mutual funds. Then he presented his research findings on how and why mutual funds and institutional investors in China outperform the market, highlighted the disadvantages retail investors possess in a considerably inefficient market and encouraged retail investors in China to consider delegate the investment decision to fund managers, trade less or to go for passive investments. Meanwhile he also urged for more disclosures on private meetings and stronger enforcement against insider trades to enhance market efficiency.
Professor Chi's presentation deck can be downloaded in the attached.