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China and the World Financial Markets 1870-1930:



    () (Yale School of Management, International Center for Finance)


    () (Yale School of Management)


    () (Yale University, School of Management; University of California, Davis -)


In this paper we review evidence about the development of the Chinese capital markets over a crucial period in world market history, and place that development in the context of world financial markets at the time. Despite fundamental differences between China today and China 100 years ago, it is still important to consider the dangers of an imbalance between domestic and international investor markets, and the mismatch between domestic and foreign expectations about investor protection. The lessons of the last century suggest that China today should consider opening Chinese investor access to foreign capital markets in order to equilibrate the level of diversification between foreign and domestic investors. In addition, protection of domestic corporate investor rights is at least as important as protecting foreign investor rights.

Suggested Citation

  • William N. Goetzmann & Andrey Ukhov & Ning Zhu, 2004. "China and the World Financial Markets 1870-1930:," Yale School of Management Working Papers ysm9, Yale School of Management.
  • Handle: RePEc:ysm:somwrk:ysm9

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    References listed on IDEAS

    1. Admati, Anat R, et al, 1986. " On Timing and Selectivity," Journal of Finance, American Finance Association, vol. 41(3), pages 715-730, July.
    2. Banz, Rolf W., 1981. "The relationship between return and market value of common stocks," Journal of Financial Economics, Elsevier, vol. 9(1), pages 3-18, March.
    3. Admati, Anat R & Ross, Stephen A, 1985. "Measuring Investment Performance in a Rational Expectations Equilibrium Model," The Journal of Business, University of Chicago Press, vol. 58(1), pages 1-26, January.
    4. Brown, Stephen J, et al, 1992. "Survivorship Bias in Performance Studies," Review of Financial Studies, Society for Financial Studies, vol. 5(4), pages 553-580.
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    Cited by:

    1. William N. Goetzmann & Elisabeth Koll, 2005. "The History of Corporate Ownership in China: State Patronage, Company Legislation, and the Issue of Control," NBER Chapters,in: A History of Corporate Governance around the World: Family Business Groups to Professional Managers, pages 149-184 National Bureau of Economic Research, Inc.
    2. Schularick, Moritz & Steger, Thomas M., 2008. "The Lucas Paradox and the quality of institutions: then and now," Discussion Papers 2008/3, Free University Berlin, School of Business & Economics.

    More about this item

    JEL classification:

    • N0 - Economic History - - General
    • N2 - Economic History - - Financial Markets and Institutions
    • N25 - Economic History - - Financial Markets and Institutions - - - Asia including Middle East

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