2381/12084684.v2 Lijuan Ma Lijuan Ma Marcel Ausloos Marcel Ausloos Christophe Schinckus Christophe Schinckus HL Felicia Chong HL Felicia Chong Fundamental Analysis in China: An Empirical Study of the Relationship between Financial Ratios and Stock Prices University of Leicester 2020 q-fin.GN China Fundamental Analysis Stock Prices 2020-04-08 16:31:03 Journal contribution https://figshare.le.ac.uk/articles/journal_contribution/Fundamental_Analysis_in_China_An_Empirical_Study_of_the_Relationship_between_Financial_Ratios_and_Stock_Prices/12084684 The informational context is regularly questioned in a transitional economic regime like the one implemented in China or Vietnam. This article investigates this issue and the predictive power of fundamental analysis in such context and more precisely in a Chinese context with an analysis of 3 different industries (media, power, and steel). Through 3 different kinds of correlation, we examine 25 financial determinants for 60 Chinese listed companies between 2011 and 2015. Our results show that fundamental analysis can effectively be used as an investment tool in transitional economic context. Contrasting with the EMH for which the accounting information is instantaneously integrated into the financial information (stock prices), our study suggests that these two levels of information are not synchronized in China opening therefore a door for a fundamental analysis based prediction. Furthermore, our results also indicate that accounting information illustrates quite well the economic reality since financial reports in each industry can disclose a part of stock value information in line with the economic situation of the industry under consideration.