Chapter 18 Herd behaviour of Chinese mutual funds

Jinghan Chen, Xinrong Xiao, Peng Cheng

Research output: Chapter in Book or Report/Conference proceedingChapterpeer-review


We develop our theoretical framework from the viewpoint of the information asymmetry and the agency theory that the Chinese mutual funds exhibit herd behaviour, and provide empirical evidence by using cross-sectional data of all the Chinese mutual funds between 1999 and 2003. We find that the Chinese mutual funds show overall herding, buy herding and sell herding, and the degree of sell herding is higher than that of buy herding. The degree of Chinese herding is higher than their US counterpart from all the three perspectives. This may be largely due to the institutional factors rather than those firm-specific factors that influence the US mutual funds investment decision.

Original languageEnglish
Title of host publicationAsia-Pacific Financial Markets
Subtitle of host publicationIntegration, Innovation and Challenges
EditorsSuk-Joong Kim, Michael Mckenzie
Number of pages19
Publication statusPublished - 2007

Publication series

NameInternational Finance Review
ISSN (Print)1569-3767


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