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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”
The Department of Finance, College of Economics, Jinan University, Guangzhou, China
- 1 The Department of Finance, College of Economics, Jinan University, Guangzhou, China
Journal of Financial Risk Management·Volume 07 (2018)·Pages 1–11·Published 6 March 2018·DOI10.4236/jfrm.2018.71001
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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.
KeywordsCo-Selling EffectShort-Term International Capital FlowsInteractivity of Markets
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