Since China's open-door policy was initiated in late 1978, there has been rapid increase in the numbers of foreign investors and foreign capital flows to China. The growing trend of foreign investment has been magnified by the improvement of economic circumstances and market-oriented economic...

This paper provides further evidence on the role of the efficient market hypothesis and the rational asset pricing model in the explanation of Chinese closed-end fund discounts. The closed-end fund discount presents a potential anomaly to the efficient market hypothesis. The results of the...