Time：12:00-13:00 p.m.,3rd July, 2018

Venue：room 505, Tongji Building A

Speaker: Jiajie Xu（Boston College）

Lecture：Trading Restriction as a Channel of Financial Contagion—Evidence from China’s Stock Market

language：Chinese

Abstract：

China’s stock market imposes various trading restrictions such as daily price limits and trading suspension rules, which are intended to stabilize the market during turmoil. This paper examines how trading restrictions, including price limits and trading suspension induced contagion during the 2015 China stock market crash. Using daily stock-level data, we find these trading restrictions made many highly valued stocks non-tradable and consequently caused mutual funds facing redemption pressure or with precautious concerns to sell other tradable stocks, exacerbating their price drops and volume decreases.