Impact of financial market liberalization on PE ratio : a study on China A-share market

This paper assesses the impact of the China’s recent financial market reforms on its A-shares Price-Earnings (PE) ratio. China has been gradually opening up its financial market since the 2000’s, allowing Chinese and foreign investors to participate and interact domestically and overseas more freely...

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Main Authors: Liew, Zhi Qi, Lim, Shaun Tau Szen, How, Chun Hung
Other Authors: Wu Guiying Laura
Format: Final Year Project
Language:English
Published: 2019
Subjects:
Online Access:http://hdl.handle.net/10356/76880
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Institution: Nanyang Technological University
Language: English
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spelling sg-ntu-dr.10356-768802019-12-10T14:42:20Z Impact of financial market liberalization on PE ratio : a study on China A-share market Liew, Zhi Qi Lim, Shaun Tau Szen How, Chun Hung Wu Guiying Laura School of Social Sciences DRNTU::Social sciences::Economic theory This paper assesses the impact of the China’s recent financial market reforms on its A-shares Price-Earnings (PE) ratio. China has been gradually opening up its financial market since the 2000’s, allowing Chinese and foreign investors to participate and interact domestically and overseas more freely. Qualified Domestic Institutional Investor (QDII), Qualified Foreign Institutional Investor (QFII), Renminbi Qualified Foreign Institutional Investor (RQFII), Shanghai- Hong Kong and Shenzhen- Hong Kong Stock Connect were selected as the financial market liberalization events of our interests. Using a panel dataset drawn from the Shanghai (SSE) and Shenzhen (SZSE) stock exchange, we find that PE ratio is negatively associated with QDII, while QFII, RQFII and Stock-Connect have a positive impact on PE ratio. The finding also provides evidence on capital flows as the transmission channel in which A-shares PE ratio is affected by the financial market reforms. Bachelor of Arts in Economics 2019-04-20T12:32:07Z 2019-04-20T12:32:07Z 2019 Final Year Project (FYP) http://hdl.handle.net/10356/76880 en 29 p. application/pdf
institution Nanyang Technological University
building NTU Library
country Singapore
collection DR-NTU
language English
topic DRNTU::Social sciences::Economic theory
spellingShingle DRNTU::Social sciences::Economic theory
Liew, Zhi Qi
Lim, Shaun Tau Szen
How, Chun Hung
Impact of financial market liberalization on PE ratio : a study on China A-share market
description This paper assesses the impact of the China’s recent financial market reforms on its A-shares Price-Earnings (PE) ratio. China has been gradually opening up its financial market since the 2000’s, allowing Chinese and foreign investors to participate and interact domestically and overseas more freely. Qualified Domestic Institutional Investor (QDII), Qualified Foreign Institutional Investor (QFII), Renminbi Qualified Foreign Institutional Investor (RQFII), Shanghai- Hong Kong and Shenzhen- Hong Kong Stock Connect were selected as the financial market liberalization events of our interests. Using a panel dataset drawn from the Shanghai (SSE) and Shenzhen (SZSE) stock exchange, we find that PE ratio is negatively associated with QDII, while QFII, RQFII and Stock-Connect have a positive impact on PE ratio. The finding also provides evidence on capital flows as the transmission channel in which A-shares PE ratio is affected by the financial market reforms.
author2 Wu Guiying Laura
author_facet Wu Guiying Laura
Liew, Zhi Qi
Lim, Shaun Tau Szen
How, Chun Hung
format Final Year Project
author Liew, Zhi Qi
Lim, Shaun Tau Szen
How, Chun Hung
author_sort Liew, Zhi Qi
title Impact of financial market liberalization on PE ratio : a study on China A-share market
title_short Impact of financial market liberalization on PE ratio : a study on China A-share market
title_full Impact of financial market liberalization on PE ratio : a study on China A-share market
title_fullStr Impact of financial market liberalization on PE ratio : a study on China A-share market
title_full_unstemmed Impact of financial market liberalization on PE ratio : a study on China A-share market
title_sort impact of financial market liberalization on pe ratio : a study on china a-share market
publishDate 2019
url http://hdl.handle.net/10356/76880
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