STOCK MARKET SEGMENTATION IN CHINA AND ANALYSIS OF ITS DETERMINANTS

In China, the A-share markets (available mainly to domestic investors) and the B- or H-share markets (available mainly to foreign investors) form a mildly segmented stock market structure with the characteristic of difference between A- and B- or H-share prices for the same dual-listing company. Con...

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Main Author: Li, Haotian
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2016
Online Access:https://eprints.nottingham.ac.uk/36369/
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author Li, Haotian
author_facet Li, Haotian
author_sort Li, Haotian
building Nottingham Research Data Repository
collection Online Access
description In China, the A-share markets (available mainly to domestic investors) and the B- or H-share markets (available mainly to foreign investors) form a mildly segmented stock market structure with the characteristic of difference between A- and B- or H-share prices for the same dual-listing company. Contrary to stock markets in other countries or areas with a segmentation structure, Chinese A shares are traded at a premium relative to their B- or H-share counterparts. In this article, price difference between A and H shares in two stock exchanges, the Shanghai Stock Exchange (SHSE) and the Shenzhen Stock Exchange (SZSE), is described, and its determinants are examined by regression analysis with panel data and a series of tests. From the findings, it can be seen that information asymmetry and demand elasticity significantly affect price difference in both stock exchanges, while the firm size effect operates only in SHSE.
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spelling nottingham-363692017-10-19T16:58:56Z https://eprints.nottingham.ac.uk/36369/ STOCK MARKET SEGMENTATION IN CHINA AND ANALYSIS OF ITS DETERMINANTS Li, Haotian In China, the A-share markets (available mainly to domestic investors) and the B- or H-share markets (available mainly to foreign investors) form a mildly segmented stock market structure with the characteristic of difference between A- and B- or H-share prices for the same dual-listing company. Contrary to stock markets in other countries or areas with a segmentation structure, Chinese A shares are traded at a premium relative to their B- or H-share counterparts. In this article, price difference between A and H shares in two stock exchanges, the Shanghai Stock Exchange (SHSE) and the Shenzhen Stock Exchange (SZSE), is described, and its determinants are examined by regression analysis with panel data and a series of tests. From the findings, it can be seen that information asymmetry and demand elasticity significantly affect price difference in both stock exchanges, while the firm size effect operates only in SHSE. 2016-09-14 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/36369/1/DT%20FINAL.pdf Li, Haotian (2016) STOCK MARKET SEGMENTATION IN CHINA AND ANALYSIS OF ITS DETERMINANTS. [Dissertation (University of Nottingham only)]
spellingShingle Li, Haotian
STOCK MARKET SEGMENTATION IN CHINA AND ANALYSIS OF ITS DETERMINANTS
title STOCK MARKET SEGMENTATION IN CHINA AND ANALYSIS OF ITS DETERMINANTS
title_full STOCK MARKET SEGMENTATION IN CHINA AND ANALYSIS OF ITS DETERMINANTS
title_fullStr STOCK MARKET SEGMENTATION IN CHINA AND ANALYSIS OF ITS DETERMINANTS
title_full_unstemmed STOCK MARKET SEGMENTATION IN CHINA AND ANALYSIS OF ITS DETERMINANTS
title_short STOCK MARKET SEGMENTATION IN CHINA AND ANALYSIS OF ITS DETERMINANTS
title_sort stock market segmentation in china and analysis of its determinants
url https://eprints.nottingham.ac.uk/36369/