China's young securities markets are at an all time high and attracting investors the world overworldwide who are eager to ride the progress to fortune. However, the Shanghai and Shenzhen markets also display high volatility, often jaggedly lurching up and down rather than rising at steady...

This paper, using Hong Kong as a test case, challenges one conventional theory and confirms another one in law and finance study: (i) legal families in relation to stock market development; (ii) transplant effect of foreign laws. Economists, most notably La Porta and colleagues, allege that...