Graduation Year


Date of Submission


Document Type

Campus Only Senior Thesis

Degree Name

Bachelor of Arts

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© 2021 Haohan Zhang


Ever since the China-United States trade war started in 2018, geopolitical tensions between the world’s two largest economies have continued to rise. Under the pressure from both governments, many U.S. listed Chinese companies decided to list their stocks on the Hong Kong Stock Exchange (HKEX) through secondary listing. Although the American Depository Receipts (ADRs) and H-shares of the same company are fully convertible with each other, there seem to be persistent discount rates between them. In this paper, I attempt to find out underlying drivers that play a crucial role in determining the discount rates. Furthermore, I also examine whether being classified in a specific sector or hiring a particular auditor has any effect on the discount rates. Lastly, I explore whether there is any structural break in my regression model.

This thesis is restricted to the Claremont Colleges current faculty, students, and staff.