arbiter
JournalsAccount

Monetary policy uncertainty and short-selling: evidence from China’s A-share market

Wenjin Feng

International Journal of Managerial Finance2026https://doi.org/10.1108/ijmf-07-2025-0334article
AJG 2ABDC A
Weight
0.50

Abstract

Purpose This study investigates how short sellers respond to monetary policy uncertainty (MPU) in China’s A-share market and whether firm-level characteristics moderate this relationship. Design/methodology/approach Using panel data and MPU indices, we estimate regression models with firm and time fixed effects. We also explore heterogeneous effects based on ownership type and managerial shareholding. Findings Short-selling activity increases during periods of high MPU. The effect is more pronounced for non-state-owned firms and those with higher managerial ownership, suggesting greater sensitivity to uncertainty due to financial and governance constraints. Originality/value This paper links macro-level policy uncertainty to micro-level trading behavior in an emerging market. It highlights how ownership and governance structures shape firm responses to uncertainty, offering new insights into the role of short sellers in monetary policy transmission.

Open via your library →

Cite this paper

https://doi.org/https://doi.org/10.1108/ijmf-07-2025-0334

Or copy a formatted citation

@article{wenjin2026,
  title        = {{Monetary policy uncertainty and short-selling: evidence from China’s A-share market}},
  author       = {Wenjin Feng},
  journal      = {International Journal of Managerial Finance},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1108/ijmf-07-2025-0334},
}

Paste directly into BibTeX, Zotero, or your reference manager.

Flag this paper

Monetary policy uncertainty and short-selling: evidence from China’s A-share market

Flags are reviewed by the Arbiter methodology team within 5 business days.

Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.