Bachelor of Arts
Barbara J. Craig, Chair
Stock Connect Program, Chinese stock market returns, Foreign equity investment
The Stock Connect programs are important steps for China to liberate its relatively restricted financial market. The Shanghai – Hong Kong Stock Connect program launched in 2014, and the Shenzhen – Hong Kong program launched in 2016 allowed both institutional and individual international investors access to the Chinese stock market for the first time. This paper studies the impact of the Stock Connect programs on Chinese stock returns and Chinese stock market’s integration with international stock markets using 2SLS regression analysis. Regression results show that the launch of the SH – HK Stock Connect program increased daily returns of all four eligible indexes under Stock Connect programs but did not increase correlation between daily performances of Chinese stock market and global stock markets with statistical significance.
Cheng, Jiadi, "The Stock Connect Programs: A Study of their Impact on Chinese Stock Returns and Global Stock Markets Integration" (2020). Honors Papers. 681.