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A Markov Regime-Switching Model of Stock Return Volatility: Evidence from Chinese Markets
Book chapter

A Markov Regime-Switching Model of Stock Return Volatility: Evidence from Chinese Markets

Thomas C. Chiang, Zhuo Qiao and Wing-Keung Wong
Nonlinear Financial Econometrics: Markov Switching Models, Persistence and Nonlinear Cointegration
01 Jan 2010

Abstract

Chinese Stock Market Conditional Volatility GARCH Model Stock Market Stock Return
As a mechanism for the development of the Chinese stock markets, issues of Chinese stocks are mainly divided into A-shares (SHA and SZA) and B-shares (SHB and SZB); both A-shares and B-shares are listed on the Shanghai Stock Exchange (SHSE) and the Shenzhen Stock Exchange (SZSE) of mainland China.1 The Chinese government also allows some companies to issue H, red-chip, N, and S shares in accordance with different listing locations and investors. Among these types of shares, H, red-chip, N, and S shares are traded on the Hong Kong Stock Exchange (HKSE), the New York Stock Exchange (NYSE), and the Singapore Stock Exchange (SSE).

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