On October 11,2024, Dr. An Yunbi, professor of finance at ODETTE Business School, University of Windsor, Canada, gave a wonderful lecture entitled Compass guided: Capital Flow and Investment Clustering in China to the teachers and students from School of Management.
Combined with the background of the Shanghai / Shenzhen-Hong Kong Stock Market trading interconnection mechanism, Professor An analyzed the impact of northbound capital flows (NCF) on the Chinese mainland stock market. He pointed out that limited rational investors show a strong herd tendency in pursuing cross-border capital flows, especially when trade-oriented NCF flows, which are more prone to chase around short-term gains.
Professor An further revealed that this herd behavior is caused by the high investor sentiment caused by a large number of NCF inflow, while the NCF outflow will lead to a more obvious herd effect, especially in the phenomenon of investment aggregation in small-cap stocks. However, he also noted that market panic and the dispersion of stock information could alleviate this conformity to some extent.
After the lecture, the students benefited a lot and had a deeper understanding of cross-border capital flows and investment behavior. Professor An interacted with the students in a nice atmosphere and answered their questions patiently.
