Purpose – The main purpose of this paper is to investigate whether Chinese investors can benefit from international diversification and where these benefits are to be found. Design/methodology/approach – This paper applies an expanding optimization procedure, which is different from the...

This paper analyzes international portfolio selection with exchange rate risk based on behavioural portfolio theory (BPT). We characterize the conditions under which the BPT problem with a single foreign market has an optimal solution, and show that the optimal portfolio contains the traditional...

This paper investigates the impact of background risk on an investor's portfolio choice in a mean-variance framework, and analyzes the properties of efficient portfolios as well as the investor's hedging behaviour in the presence of background risk. Our model implies that the efficient portfolio...

Purpose – The main purpose of this paper is to investigate whether Chinese investors can benefit from international diversification and where these benefits are to be found. Design/methodology/approach – This paper applies an expanding optimization procedure, which is different from the...

This paper reviews the evolution of Chinese land policy over the past two decades and examines its impact on the dynamic relationship between housing and land prices in the Chinese real estate market. Using panel datasets from Beijing, Shanghai, Tianjin, and Chongqing, we find that there exists...