Why does Mainland China pay more? : a study of dual-listed stocks in Mainland China and Hong Kong stock exchanges | |
| Author | Chai, Xiaying |
| Call Number | AIT RSPR no.SM-10-02 |
| Subject(s) | Stock exchanges Stocks--China Stocks--Hong Kong |
| Note | 33 leaves : ill. |
| Publisher | Asian Institute of Technology |
| Series Statement | Research studies project report ; no. SM-10-02 |
| Abstract | The price premium between the same stocks in different markets is a phenomenon that exists in many countries, including China. Different from other emerging countries, the Chinese companies are mostly listed as H-Share in HKEx (Hong Kong Exchanges and Clearing Ltd.) first, and then listed as A-Share in the domestic stock exchanges later. And the stocks listed in H-Share are traded at discount comparing with the price in domestic market. The key findings of this study are: the government experiment in the "Going-out" Policy and the differences in IPO issuing procedure and in listing lag of two markets are primary reasons for Chinese companies list in H-Share before A-Share. This study approved that even there was significant decrease in price premium between A-Share and H-Share when QFIIs entered domestic A-Share price played the simultaneously affects in premium reduction. The declined premium can be explained by other macro factors, including the goverment policy and the world capital flows. The appreciation of Chinese Yuan that affects in price premium was approved. Because the currency exchange adjjusted returns of two markets were almost the same under the same volatility level, which supports the argument that forereign investors are not interested in arbitrating between two markets. Therer is no significant relationship found between the number of shares traded in public and the price premium ratio among dual listed companies. Finally, Samples fro banking and petrochemical industries show that banking industry has less price premium than petrochemical industry while the excess return in correspondent equity market is less at the same time. |
| Year | 2010 |
| Corresponding Series Added Entry | Asian Institute of Technology. Research studies project report ; no. SM-10-02 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management (SOM) |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Sundar Venkatesh |
| Examination Committee(s) | Gopalaswamy, Arun Kumar;Badir, Yuoser |
| Scholarship Donor(s) | AIT Fellowship |
| Degree | Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 2010 |