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Do foreign trading patterns cause abnormal information from Taiwanese stock markets?

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  • Ming-Chih Lee
  • Yen-Hsien Lee

Abstract

This study investigates whether foreign investors cause abnormal information by jump process in the Taiwanese stock market during before and after relaxation of the restrictions on QFII investors on 2 October 2003 (pre- and post-QFII). By conducting further analysis, this study conducts detailed analysis and explores how abnormal information and QFII behaviour are related by performing correlation and Granger causality analyses. This study concludes that the release of restrictions on QFII has been extremely helpful in improving the domestic investment environment and stabilizing the Taiwanese stock market.

Suggested Citation

  • Ming-Chih Lee & Yen-Hsien Lee, 2008. "Do foreign trading patterns cause abnormal information from Taiwanese stock markets?," Applied Economics Letters, Taylor & Francis Journals, vol. 15(15), pages 1219-1224.
    • Handle: RePEc:taf:apeclt:v:15:y:2008:i:15:p:1219-1224
    DOI: 10.1080/13504850601018056
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    References listed on IDEAS

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