Guo, Ming; Li, Zhan; Tu, Zhiyong - In: Journal of Banking & Finance 36 (2012) 2, pp. 575-583
Unique to the world, China adopts a “T+1 trading rule”, which prevents investors from selling stocks bought on the same day. We develop a dynamic price manipulation model to study the effects of the “T+1 trading rule”. Compared to the “T+0 trading rule”, which allows investors to buy...