Changes in Regulation and Prices of Dual-listed Stocks in China

Download or read book Changes in Regulation and Prices of Dual-listed Stocks in China written by Wing Him Yeung and published by . This book was released on 2007 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The share prices of a company listed on more than one stock exchange usually are in or close to equilibrium. Nevertheless, it has been observed the prices of the same Chinese company listed in China (A shares) and Hong Kong (H shares) are not anywhere close to equivalent. The article invesitgates whether the A and H share returns experience any co-movement, and whether changes in regulations have an impact on the correlations between the returns. Empirical results from this article show that the A and H shares only demonstrate very limited co-movement. In addition, the correlations between the returns are time-varying and are affected by changes in regulations by the Chinese government.