Global Economic Policy Uncertainty, Liquidity of Hong Kong Stocks, and the A-H Share Price Discount

DOI

10.2991/978-94-6463-734-2_74How to use a DOI?

Keywords

Global Economic Policy Uncertainty; Hong Kong Stock Market; Liquidity; A-H Share Price Discount

Abstract

Using data from AH-listed companies and the Global Economic Policy Uncertainty Index from November 2013 to December 2023, this paper examines the impact of global economic policy uncertainty on the liquidity of H-shares of AH companies and, subsequently, the impact on the A-H share price discount resulting from changes in liquidity. The study finds that global economic policy uncertainty increases systemic risks, leading to the withdrawal of foreign institutional funds, which reduces the liquidity and valuation of the Hong Kong stock market and exacerbates the A-H share price discount. It also explores the heterogeneity of AH companies under the influence of global economic policy uncertainty, revealing that the impact of rising global economic policy uncertainty on the A-H share price discount is stronger among non-state-owned enterprises (non-SOEs), reflecting their greater sensitivity to market changes and reliance on market mechanisms to respond to changes in the A-H share price discount. In contrast, SOEs may enjoy more policy support and resource acquisition channels, resulting in a weaker response to changes in the independent variable.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Guangzheng Zhou
PY  - 2025
DA  - 2025/05/27
TI  - Global Economic Policy Uncertainty, Liquidity of Hong Kong Stocks, and the A-H Share Price Discount
BT  - Proceedings of the 2025 10th International Conference on Social Sciences and Economic Development (ICSSED 2025)
PB  - Atlantis Press
SP  - 675
EP  - 688
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-734-2_74
DO  - 10.2991/978-94-6463-734-2_74
ID  - Zhou2025
ER  -