Quantifying the impact of the November 2014 Shanghai-Hong Kong stock connect

Richard Burdekin and Pierre Siklos

CAMA Working Papers from Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University

Abstract: The November 2014 Shanghai-Hong Kong Stock Connect represented an important step in China’s capital account liberalization, allowing relatively free movement of investor funds between the two markets for the first time. We offer a quantification of the effects of the new program, examining Northbound and Southbound flows of funds over the first two years of the Stock Connect. While controlling for other sentiment and liquidity effects, we test how these flows may have affected the extent of the premium seen for local A-share listings in Shanghai relative to the prices accruing to the same companies in Hong Kong market trading.

Keywords: Capital account liberalization; Stock returns; Sentiment; Shanghai; Hong Kong (search for similar items in EconPapers)
JEL-codes: G15 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2018-01
References: Add references at CitEc
Citations: View citations in EconPapers (19)

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https://cama.crawford.anu.edu.au/sites/default/fil ... urdekin_siklos_0.pdf (application/pdf)

Related works:
Journal Article: Quantifying the impact of the November 2014 Shanghai-Hong Kong Stock Connect (2018)
Working Paper: Quantifying the Impact of the November 2014 Shanghai-Hong Kong Stock Connect (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:een:camaaa:2018-09

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