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Comments on “Government intervention through informed trading in financial markets” by Shao’an Huang, Zhigang Qiu, Gaowang Wang and Xiaodan Wang

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  • Kang, Junqing

Abstract

“Government intervention through informed trading in financial markets” (HQWW) investigates how government can intervene and stabilize the financial market via reserve trading on fundamental information. This short comment notes that, for the government intervention, there might exist a trade-off between applying fundamental information and exploring demand information when considering direct trading in financial market.

Suggested Citation

  • Kang, Junqing, 2022. "Comments on “Government intervention through informed trading in financial markets” by Shao’an Huang, Zhigang Qiu, Gaowang Wang and Xiaodan Wang," Journal of Economic Dynamics and Control, Elsevier, vol. 141(C).
    • Handle: RePEc:eee:dyncon:v:141:y:2022:i:c:s0165188922000847
    DOI: 10.1016/j.jedc.2022.104380
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    References listed on IDEAS

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    1. Liyan Yang & Haoxiang Zhu, 2020. "Back-Running: Seeking and Hiding Fundamental Information in Order Flows," Review of Finance, European Finance Association, vol. 33(4), pages 1484-1533.
    2. Yi Huang & Jianjun Miao & Pengfei Wang, 2019. "Saving China’s Stock Market?," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 67(2), pages 349-394, June.
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    4. Manzano, Carolina & Vives, Xavier, 2011. "Public and private learning from prices, strategic substitutability and complementarity, and equilibrium multiplicity," Journal of Mathematical Economics, Elsevier, vol. 47(3), pages 346-369.
    5. De Long, J Bradford & Andrei Shleifer & Lawrence H. Summers & Robert J. Waldmann, 1990. "Noise Trader Risk in Financial Markets," Journal of Political Economy, University of Chicago Press, vol. 98(4), pages 703-738, August.
    6. Jayant Vivek Ganguli & Liyan Yang, 2009. "Complementarities, Multiplicity, and Supply Information," Journal of the European Economic Association, MIT Press, vol. 7(1), pages 90-115, March.
    7. Maryam Farboodi & Laura Veldkamp, 2020. "Long-Run Growth of Financial Data Technology," American Economic Review, American Economic Association, vol. 110(8), pages 2485-2523, August.
    8. Liyan Yang & Haoxiang Zhu, 2020. "Back-Running: Seeking and Hiding Fundamental Information in Order Flows," The Review of Financial Studies, Society for Financial Studies, vol. 33(4), pages 1484-1533.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Government intervention; Fundamental information; Demand information;
    All these keywords.

    JEL classification:

    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • G1 - Financial Economics - - General Financial Markets

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