TITLE:
Impact of Short-Term International Capital Flows on Interactivity of Stock Market and Real Estate Market in Chinese First-Tier Cities: A Viewpoint of “Co-Selling Effect”
AUTHORS:
Yiming Zhang
KEYWORDS:
Co-Selling Effect, Short-Term International Capital Flows, Interactivity of Markets
JOURNAL NAME:
Journal of Financial Risk Management,
Vol.7 No.1,
March
6,
2018
ABSTRACT: This paper offers a new
prospect of interactivity of stock market and real estate market, it is found
that not only the fundamental factors have impact on this, but the non-fundamental factors like short-term
international capital flows play an important role in it. This paper tests the
impact from short-term international capital flows on interactivity of stock
market and real estate market by using dummy variables describing market
conditions based on the “Co-Selling Effect” theory, the results show that the
“Co-Selling Effect” does exist when
market condition is bad, but this phenomenon could not be observed when market
condition is good. This point is consistent with the classic theory.