2004•ForecastingOpen access
On the Sources of Contrarian Profits in Chinese Stock Market
Jianguo Wang
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Abstract
The author reviews main literatures of the contrarian theory abroad. Theoretically, the sources of contrarian profits in Chinese stock market are discussed in combination with Chinese practice. Empirical evidence shows that the majority of contrarian profits in Chinese stock market are due to overreaction while a small part is due to negative correlation of common factor in time series.