Research on Bond Participants’ Emotion Reactions Toward the Internet News in China’s Bond Market

Zhang, Wei; Wang, Jun; Mu, Tong

doi:10.3389/fpsyg.2022.855063

Cited by 2 publications

(5 citation statements)

References 46 publications

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“…As it is mentioned by Wu and Tian [6], empirical result of conducting the variables and empirical models has shown that among the three potential factors of the bond credit rating and the carbon risk which are the information transferred by the credit rating agencies, credit risk and the way of fund financed being invested, the result has shown that the information transferred by the credit rating agencies is less effective and inefficient in affecting the relationship between the bond credit spreads and the credit risk. The similar problem about the market efficiency of the bond market of China has also been mentioned by Hung et al [9] which is mainly caused by the "information asymmetry".…”

Section: Problemmentioning

confidence: 77%

“…The second problem is about the market efficiency of the bond market of China. As it is mentioned by Zhang, Wang and Tong [6], by using the econometric models to measure if the emotion behaviors of CRAs and bond investors are affected by the internet financial news, the result has shown that the internet financial news has almost no effect on the CRAs and both of the good or bad news are having strong effect on the emotion behavior of the bond investors. In this case, the situation and problems which has also been mentioned by Seafarer [5] has happened frequently where the crediting ratings of the bonds have only been decreased before serval days of default where the financial news about the default risk of the companies has long been mentioned in the internet financial news and has greatly affected the emotion behavior of the bond investors.…”

Section: Problemmentioning

confidence: 98%

“…Secondly, as it is mentioned by Zhang and Tong [6], not all of the financial new on the internet are effectively in affecting the bond investors of the market. In fact, based on the empirical result of the research being conducted, the internet financial news affecting the investors behaviors is mainly related to the timeliness of the news and the ownership of the enterprise mentioned in the news where the investors has shown great sensitivity to the enterprise without government background since they could not acquire the implicit guarantee and effective support from the government compared with the state-owned enterprise [10].…”

Section: Solutionmentioning

confidence: 98%

“…Firstly, the structure of how the bond market of China works which is consisted of the details about the different kinds of bonds, issuers and markets will be illustrated based on the data and information from FTSE Russell [4] and Seafarer [5]. Secondly, based on the analysis of the current situation mentioned in the first part, the problem of the market risk mentioned by Seafarer [5], the problem of market efficiency mentioned by Zhang, Wang and Tong [6], and the problem of carbon risks mentioned by Wu and Tian caused by credit rating and regulation system will be illustrated separately. Thirdly, focusing on the problem mentioned above, the solution about how to improve the credit rating system will be explained.…”

Section: Introductionmentioning

confidence: 99%

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Current Situation, Problem and Solution of the Bond Market of China

Zhang

2023

AEMPS

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In 2010, the economy scale of China has become the second largest in the worldwide after exceeding Japan which just next to the economy scale of United States which has kept playing an important role in the global economy. In this case, more and more attention has been focused on it and especially for its financial market which is young but huge in scale. However, as the Chinese financial market was firstly established in 1993, the history of its development is very short and the research related to it is very limited, particularly for the bond market of China which has a very different institution and structure compared with the bond market of the main developed countries in the world where the main changes are followed by the instruction and plan of the government. As the bond is the financial instrument which decides the interest rate, its market has a great influence on the financial liquidity of the whole economy. In addition, the high interest rate in the bond market of China compared with the other bond market has also attracted the foreign investors in the whole world to increase their investment to the market. Therefore, studying the bond market of China is very helpful in understanding the current situation of the bond market of China so as to find out its problems and solutions which are very important for the economy to grow in a healthy way. In this paper, the solutions of how to solve the problems about the risk, market efficiency and the sustainable development of the bond market of China will be analyzed based on its current situation including the structure and scale.

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Section: Problemmentioning

confidence: 77%

Section: Problemmentioning

confidence: 98%

Section: Solutionmentioning

confidence: 98%

Section: Introductionmentioning

confidence: 99%

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Current Situation, Problem and Solution of the Bond Market of China

Zhang

2023

AEMPS

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“…This paper is subject to certain limitations that may present avenues for further research. Zhang et al (2022) find that in China’s bond market, investors’ reactions to good and bad news are asymmetric. In addition, the asymmetric effect of sentiment has been confirmed to exist in the stock market ( Akhtar et al, 2013 ).…”

Section: Conclusion and Discussionmentioning

confidence: 99%

Does media sentiment affect stock prices? Evidence from China’s STAR market

Dong

Liu

et al. 2022

Front. Psychol.

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ObjectiveThis paper explores the impact of media sentiment on stock prices on the Shanghai Stock Exchange Science and Technology Innovation Board (hereinafter the STAR market) from a behavioral finance perspective.MethodsWe collect Baidu News coverage of STAR-listed firms as the text, and measure text sentiment using a machine learning-based text analysis technique. We then empirically examine the impact of media sentiment on STAR market stock prices from two aspects: IPO pricing efficiency and IPO first-day stock performance.Results(1) Media sentiment has no significant impact on IPO pricing efficiency, thus suggesting that institutional investors participating in such offerings are generally not affected by media sentiment. (2) Optimistic media sentiment has a positive impact on IPO first-day returns, which indicates that individual investors are more easily influenced by media sentiment and therefore likely to abandon their rational judgment. (3) Media sentiment had a greater impact on IPO first-day returns during the COVID-19 pandemic than those before it, which suggests that individual investors are more influenced by media sentiment during pandemics.DiscussionOur findings deepen the understanding of stock price formation on the STAR market, which provide a statistical basis for formulating policy directions and investment strategies.

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Research on Bond Participants’ Emotion Reactions Toward the Internet News in China’s Bond Market

Cited by 2 publications

References 46 publications

Current Situation, Problem and Solution of the Bond Market of China

Current Situation, Problem and Solution of the Bond Market of China

Does media sentiment affect stock prices? Evidence from China’s STAR market

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