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• Parallel Listings And True Price Value by Daryl Guppy and Chen Jing

  ARTICLE SYNOPSIS ...Parallel Listings And True Price Value by Daryl Guppy and Chen Jing In the second part of this series we continue to look at the differences in traders' perceptions by analyzing stocks listed in the Shanghai market and their counterpart listing in the Hong Kong market. Trends and their behavior provide an analysis of longer-term market behavior. Chart patterns are a reflection of trading psychology and provide a range of high-probability outcomes. The patterns develop in response to traders' perceptions of opportunity. Although the link with fundamental developments may be more tenuous, we w...

AUTHOR: Daryl Guppy and Chen JingDATE: MAY 2008SUBJECT: Indicators

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• True Price Value by Daryl Guppy and Chen Jing

  ARTICLE SYNOPSIS ...True Price Value by Daryl Guppy and Chen Jing What is more important in determining market behavior and market pricing, fair value based on fundamentals or the market value created by psychological trading behavior? The classic economic and market models rest on fair value and describe pricing activity in the market as subject to "irrational exuberance." An analysis of the China and Hong Kong markets with a parallel listing of China-based companies suggest that psychological trading behavior has a much greater role to play in correct market pricing. The study suggests that the market price i...

AUTHOR: Daryl Guppy and Chen JingDATE: APR 2008SUBJECT: Indicators