Price volatility in the Hong Kong stock market: a test of the information and trading noise hypothesis

Kalok Chan, Yue-cheong Chan

Research output: Journal Publications and ReviewsRGC 21 - Publication in refereed journalpeer-review

7 Citations (Scopus)

Abstract

The Hong Kong stock market had about five years of no afternoon trading session on Wednesday in the 1980's. This paper makes use of this special feature in testing among public information, private information and trading noise hypothesis. We examine the effect on interday volatility, intraday volatility and the trading volume when there is no afternoon trading on Wednesday. The results indicate that the interday and intraday volatility as well as the trading volume decrease on Wednesday but increase on Thursday. The evidence is therefore consistent with the private information, but not with the public information or trading noise hypothesis. © 1993.
Original languageEnglish
Pages (from-to)189-201
JournalPacific-Basin Finance Journal
Volume1
Issue number2
DOIs
Publication statusPublished - May 1993
Externally publishedYes

Bibliographical note

Publication details (e.g. title, author(s), publication statuses and dates) are captured on an “AS IS” and “AS AVAILABLE” basis at the time of record harvesting from the data source. Suggestions for further amendments or supplementary information can be sent to [email protected].

Research Keywords

  • Hong Kong stock market
  • Interday and intraday volatility
  • Public and private information
  • Trading noise
  • Trading volume

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