In comparison to developed securities markets, it is intriguing to observe that the Chinese stock market's momentum or reversal effect is inconsistent. We address this controversy using a novel paradigm based on functional data analysis (FDA) with the goal of reconciling previous inconsistency....

Since investors have diverse perspectives and limited information, their expectations can be subjective and prone to inaccuracies. Hence, price fluctuations are influenced by heterogeneous beliefs regarding future expectations, and both surveys and straightforward models can only partially...