Do investors learn from their mistakes? : learning in the Chinese warrants bubble

Abstract

In the Chinese warrants bubble episode, there are multiple put warrants traded in the market with different maturity dates, constituting a sequence of burst of bubbles. This paper exams the impact of experiencing the previous burst period on future warrant market participation and trading performance. About 70% of investors in the last week of put warrants trading are new investor, and most investors learned that they should leave before the burst after trading in a burst stage. However, there is a sub group of investors keep trading in the last week before expiration and lose money even more than new entry.

Date of Award	2022
Original language	English
Awarding Institution	The Hong Kong University of Science and Technology
Supervisor	Abhiroop MUKHERJEE (Supervisor)