Shanghai-Hong Kong stock connect: an analysis of Chinese partial stock market liberalization impact on the local and foreign markets
Shanghai-Hong Kong Stock Connect is a partial liberalization providing domestic and foreign investors mutual access to stock markets. This study analyzes post-liberalization short- and medium-term impacts on both local and foreign markets. Our results suggest that contrasting to the expectation of h...
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| Format: | Article |
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Elsevier
2017
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| Online Access: | https://eprints.nottingham.ac.uk/46541/ |
| _version_ | 1848797350874578944 |
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| author | Bai, Ye Yan Pang Chow, Darien |
| author_facet | Bai, Ye Yan Pang Chow, Darien |
| author_sort | Bai, Ye |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | Shanghai-Hong Kong Stock Connect is a partial liberalization providing domestic and foreign investors mutual access to stock markets. This study analyzes post-liberalization short- and medium-term impacts on both local and foreign markets. Our results suggest that contrasting to the expectation of homogeneous mutual benefits, the implementation of the Connect have asymmetric impacts on mainland and Hong Kong stock markets. They are driven by the unbalanced developments of both markets. In the medium-term, we find increasing market liquidity and size but also increasing risk persistence and exposure to systematic risk, though the magnitude of changes vary between two markets. |
| first_indexed | 2025-11-14T20:02:29Z |
| format | Article |
| id | nottingham-46541 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| last_indexed | 2025-11-14T20:02:29Z |
| publishDate | 2017 |
| publisher | Elsevier |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-465412020-05-04T19:06:45Z https://eprints.nottingham.ac.uk/46541/ Shanghai-Hong Kong stock connect: an analysis of Chinese partial stock market liberalization impact on the local and foreign markets Bai, Ye Yan Pang Chow, Darien Shanghai-Hong Kong Stock Connect is a partial liberalization providing domestic and foreign investors mutual access to stock markets. This study analyzes post-liberalization short- and medium-term impacts on both local and foreign markets. Our results suggest that contrasting to the expectation of homogeneous mutual benefits, the implementation of the Connect have asymmetric impacts on mainland and Hong Kong stock markets. They are driven by the unbalanced developments of both markets. In the medium-term, we find increasing market liquidity and size but also increasing risk persistence and exposure to systematic risk, though the magnitude of changes vary between two markets. Elsevier 2017-09-14 Article PeerReviewed Bai, Ye and Yan Pang Chow, Darien (2017) Shanghai-Hong Kong stock connect: an analysis of Chinese partial stock market liberalization impact on the local and foreign markets. Journal of International Financial Markets, Institutions and Money, 50 . pp. 182-203. ISSN 1042-4431 Shanghai-Hong Kong Stock Connection; Stock market liberalization; Event study https://doi.org/10.1016/j.intfin.2017.09.006 doi:10.1016/j.intfin.2017.09.006 doi:10.1016/j.intfin.2017.09.006 |
| spellingShingle | Shanghai-Hong Kong Stock Connection; Stock market liberalization; Event study Bai, Ye Yan Pang Chow, Darien Shanghai-Hong Kong stock connect: an analysis of Chinese partial stock market liberalization impact on the local and foreign markets |
| title | Shanghai-Hong Kong stock connect: an analysis of Chinese partial stock market liberalization impact on the local and foreign markets |
| title_full | Shanghai-Hong Kong stock connect: an analysis of Chinese partial stock market liberalization impact on the local and foreign markets |
| title_fullStr | Shanghai-Hong Kong stock connect: an analysis of Chinese partial stock market liberalization impact on the local and foreign markets |
| title_full_unstemmed | Shanghai-Hong Kong stock connect: an analysis of Chinese partial stock market liberalization impact on the local and foreign markets |
| title_short | Shanghai-Hong Kong stock connect: an analysis of Chinese partial stock market liberalization impact on the local and foreign markets |
| title_sort | shanghai-hong kong stock connect: an analysis of chinese partial stock market liberalization impact on the local and foreign markets |
| topic | Shanghai-Hong Kong Stock Connection; Stock market liberalization; Event study |
| url | https://eprints.nottingham.ac.uk/46541/ https://eprints.nottingham.ac.uk/46541/ https://eprints.nottingham.ac.uk/46541/ |