This article endogenizes information acquisition and portfolio delegation in a one-period strategic trading model. We find that, when the informed portfolio manager is relatively risk tolerant (averse), price informativeness increases (decreases) with the amount of noise trading. When noise...

We analyze how speculative financial innovation affects stock prices, risk premiums, market liquidity, and investor welfare in an economy with heterogeneous beliefs. When investors disagree about the covariance of the newly introduced stocks with the original stocks, we show that financial...

This paper reviews the history of the China Bond market, takes a look at its current market structure, and examines its market performance and market prospects. Domestic commercial banks are dominant investors in the interbank market, but foreign investors have limited access to the market at...