Open Access Senior Thesis
Bachelor of Arts
Richard C.K. Burdekin
© 2013 Tom Guo
This study builds on the paper by Arquette, Brown, and Burdekin (2008) and asks whether the factors which they find to be significant in influencing the differential between the share prices of Chinese securities traded on their home market in Shanghai versus share prices observed offshore in Hong Kong and New York have varying degrees of influence when compared across industries. This paper focuses on Chinese companies listed on both the Shanghai and Hong Kong Stock Exchanges and finds that the proxy variables of expected exchange rate change, relative market sentiment, and relative company sentiment are significant in determining the average discount observed and that their effects do indeed vary significantly from industry to industry.
Guo, Tom, "The price discounts of Chinese cross-listed companies and their variation across sectors" (2013). CMC Senior Theses. 569.