Chinese mutual fund stock-holding characteristics: a tale of two sentiments
Abstract
Are the stock characteristics of mutual fund holdings different when the investor sentiment is high or low? The answer depends on whose sentiment is used. The institutional investor sentiment is constructed from financial market prices and activities, and the individual investor sentiment is constructed from the technical analysis of stock prices. It is shown that Chinese mutual funds tend to hold high beta stocks and low book-to-market stocks when the institutional investor sentiment is high, and they tend to hold past-winner stocks when the individual investor sentiment is high. These findings point to a hint of irrationality for mutual funds.
Fields of Study & Subjects
Insurance and Financial Risk Management
Global Financial Crisis and Policies
Banking stability
regulation
efficiency
Publication details
- Journal / source
- Applied Economics Letters
- Publisher
- Informa UK Limited
- Pages
- 1–5
- Publication date
- 6 May 2026
- Language
- EN