Shareholder Conflicts of Values and Preferences, Policy Uncertainty, and Price Gaps Between Dual‐Listed A‐ and H‐Shares in China
ABSTRACT Investors in Mainland China embrace collectivism and government‐driven socio‐economic development, while their peers in Hong Kong cherish individualistic ethos and democratic governance policies. We test the hypothesis that these conflicts of values and preferences amplify the positive gaps in price and trading volume of dual‐listed A‐ and H stocks in Shanghai and Hong Kong stock exchanges but dampen the associated relative price volatility. Our findings drawn from the stock market integration initiative of Hong Kong and Mainland China in 2014 and the 2018 trade wars between China and the United States offer persuasive support for this novel narrative.
Authors
- Haofei Zhang (ORCID: https://orcid.org/0000-0001-5386-8848)
- Shantaram P. Hegde
- Peng Jin
Institutions
- University of Connecticut (US)
- Ningbo University of Technology (CN)
- University of Colorado Colorado Springs (US)
Publication Details
- Journal
- European Financial Management
- Published
- 2026-04-20
- DOI
- https://doi.org/10.1111/eufm.70070
- Primary Topic
- China's Socioeconomic Reforms and Governance
- Type
- article
- Field-Weighted Citation Impact
- 0.00
Funders
- National Natural Science Foundation of China
- Ningbo University of Technology