A unique “TÂ +Â 1 trading rule” in China: Theory and evidence

► We model the “T + 1 trading rule” in China. ► “T + 1 trading rule” reduces the total trading volume and price volatility. ► “T + 1 trading rule” improves the trend chasers' welfare. ► Tests using data on China's B-share stock market support the model's predictions.