Purpose – The purpose of this paper is to compare the short‐term trading behaviour of A shares owned by domestic investors and their dually‐traded B shares owned by foreign investors, after a period of significant price change. Design/methodology/approach – Given that the fundamentals of...

Previous studies concluded that investors suffer from the 52-week high/low anchoring biases. We expand this evidence to corporate insiders, the conventionally viewed as informed traders. We find that they systematically trade profitably at these price extremes by exploiting anchoring biases of...