International Journal of Science and Research (IJSR)

International Journal of Science and Research (IJSR)
Call for Papers | Fully Refereed | Open Access | Double Blind Peer Reviewed

ISSN: 2319-7064


Downloads: 194 | Views: 286

Research Paper | Economics | China | Volume 8 Issue 3, March 2019


An Empirical Study on the Impact of Stock Market Interconnection Policyon A-H Premium

Shuman Zhang


Abstract: This paper examines whether the implementation of the stock market interconnection policy reduces the A-H premium by combining the four hypothesis of impact mechanism on the A-H premium. This study conducts quantitative approach and use panel data of 81 companies within Chinese equity markets over the period of two stock interconnect policy (Shanghai-Hong Kong stock connect policy and Shenzhen-Hong Kong stock connect policy). The conclusion shows that the implementation of Shanghai-Hong Kong stock connect policy has significantly increased the A-H premium. The implementation of Shenzhen-Hong Kong stock connect does not have a significant impact on A-H premium.


Keywords: stock market interconnection policy, SH-HKSC, SZ-HKSC, A-H premium


Edition: Volume 8 Issue 3, March 2019,


Pages: 78 - 80


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