Mapping the political risk perceptions and strategies of Hong Kong Chinese entrepreneurs

Risk under "One Country and Two Systems": Evidence from Class A, B and H Shares of Chinese Listed Companies

Review of Pacific Basin Financial Markets and Policies ◽

10.1142/s0219091503001067 ◽

2003 ◽

Vol 06 (02) ◽

pp. 179-197 ◽

Cited By ~ 10

Author(s):

Yimin Zhang ◽

Ronald Zhao

Keyword(s):

Hong Kong ◽

Risk Premium ◽

Political Risk ◽

Listed Companies ◽

Interest Rate Risk ◽

The Political ◽

Class A ◽

Rate Risk ◽

Chinese Listed Companies ◽

Two Systems

Chinese listed companies issue Class A, B and H shares to Chinese, foreign and Hong Kong investors, respectively. Entitled to exactly the same rights and obligations, the three classes of shares are, however, traded at significantly different prices. The valuation differential is attributable to the different responses to the country-specific risk related to the emerging Chinese stock market by the three categories of investors. The country risk of China can be decomposed into political risk, exchange rate risk, interest rate risk and market risk. Empirical tests provide strong evidence to support the decomposition model. Compared with Chinese investors of A-shares, foreign investors would require a higher rate of return for B-shares to adjust for the political risk of China, reflecting a differential in the risk premium required on the world capital market. In comparison, the Hong Kong investors, who have greater tolerance of the political risk involved in H-shares as a result of the increasing integration between the Hong Kong and Chinese markets under "one country and two systems", are willing to pay a higher price for H-shares relative to B-shares.

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The Revival of a Tradition of Chinese Medicine in a Reclaimed Chinese Territory

The American Journal of Chinese Medicine ◽

10.1142/s0192415x05003399 ◽

2005 ◽

Vol 33 (05) ◽

pp. 687-701 ◽

Cited By ~ 6

Author(s):

Jenny Wong ◽

Jean Woo

Keyword(s):

Hong Kong ◽

Chinese Medicine ◽

Political Change ◽

Political Transition ◽

Hong Kong Chinese ◽

The Political ◽

British Colony

The effect of the political transition from a British Colony to a Special Administration Region of China in 1997 on the tradition of Chinese medicine is examined using historical reviews as well as interviews with various sectors of the population in Hong Kong. Results show that the political change has stimulated the formation of a location-specific Hong Kong Chinese medicine strongly characterized by both scientific and commercial elements developed from the culture of Chinese medicine.

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