Graduation Year
Fall 2011
Document Type
Open Access Senior Thesis
Degree Name
Bachelor of Arts
Department
Economics
Reader 1
Lisa Meulbroek
Reader 2
Gregory Hess
Terms of Use & License Information
Rights Information
© 2011 Justin Spitzer
Abstract
Over the past two decades a number of Chinese companies have issued shares on both the Hong Kong Stock Exchange and on one of the Chinese stock exchanges. The Hong Kong-listed H-shares of Chinese dual-listed companies have traded at a persistent discount rate relative to the China-listed A-shares. As these shares represent the same ownership rights and cash flows, the shares should theoretically trade at the same price. The price differential between H-shares and A-shares should decrease as international markets continue to converge. The paper analyzes the persistence of the discount rates and the effects of both market and investor sentiment on the price disparity between the two shares. The paper also examines whether certain sectors consistently trade at larger discount rates relative to others.
Recommended Citation
Spitzer, Justin, "The Persistence of Pricing Differentials in Dual-listed Companies in Hong Kong and China" (2011). CMC Senior Theses. 272.
https://scholarship.claremont.edu/cmc_theses/272
