Comparative Analysis of Interfering Factors of Stock Price Return between Hong Kong and US

Research Article
Open access

Comparative Analysis of Interfering Factors of Stock Price Return between Hong Kong and US

Jiongyi Lyu 1* , Hao Wang 2 , Yueyang Hu 3 , Zhijing Xu 4
  • 1 UCD China, University College Dublin, Dublin, Ireland    
  • 2 School of International Studies, Whenzhou Business College, Wenzhou, China    
  • 3 School Of Economics, Zhejiang University of Technology, Hangzhou, China    
  • 4 Nanjing Foreign Language School, Nanjing, China    
  • *corresponding author jiongyi.lv@ucdconnect.ie
Published on 21 March 2023 | https://doi.org/10.54254/2754-1169/3/2022809
AEMPS Vol.3
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-915371-15-7
ISBN (Online): 978-1-915371-16-4

Abstract

Affected by the outbreak of the COVID-19, the factors affecting equity yields will become changed. This paper aims to analyze the financial information that affects stock returns in the HK market versus the US market from four perspectives-market capitalization, yield rates, correlation of major indices and liquidity. Multiple linear regressions were conducted separately for HK and US stocks and used factor analysis as a supplementary part to further explain these two markets. We show experimentally that the US stock market outperforms the HK stock market in terms of the explanatory degree of model. The solvency indicators are a class of common indicator that affects the expected rate of return in HK and US market.

Keywords:

US market, Hong Kong market, financial indicators, expected rate of return

Lyu,J.;Wang,H.;Hu,Y.;Xu,Z. (2023). Comparative Analysis of Interfering Factors of Stock Price Return between Hong Kong and US. Advances in Economics, Management and Political Sciences,3,384-393.
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References

[1]. William F. Sharpe. (1964). CAPITAL ASSET PRICES: A THEORY OF MARKET EQUILIBRIUM UNDER CONDITIONS OF RISK*. The Journal of Finance, 19(3), pp. 425-442.

[2]. Graeme Guthrie. (2010). A note on operating leverage and expected rates of return. Finance Research Letters, 8(2), pp. 88-100.

[3]. Drew, M. E., Naughton, T., & Veeraraghavan, M. (2003). Firm size, book-to-market equity and security returns: evidence from the Shanghai Stock Exchange. Australian Journal of Management, 28(2), 119+.

[4]. Amihud, Y., (2002). Illiquidity and stock returns: cross-section and time series effects. Journal of Financial Markets 5, 31–56.

Cite this article

Lyu,J.;Wang,H.;Hu,Y.;Xu,Z. (2023). Comparative Analysis of Interfering Factors of Stock Price Return between Hong Kong and US. Advances in Economics, Management and Political Sciences,3,384-393.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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About volume

Volume title: Proceedings of the 6th International Conference on Economic Management and Green Development (ICEMGD 2022), Part Ⅰ

ISBN：978-1-915371-15-7(Print) / 978-1-915371-16-4(Online)
Editor：Javier Cifuentes-Faura, Canh Thien Dang
Conference website: https://www.icemgd.org/
Conference date: 6 August 2022
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.3
ISSN：2754-1169(Print) / 2754-1177(Online)

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References

[1]. William F. Sharpe. (1964). CAPITAL ASSET PRICES: A THEORY OF MARKET EQUILIBRIUM UNDER CONDITIONS OF RISK*. The Journal of Finance, 19(3), pp. 425-442.

[2]. Graeme Guthrie. (2010). A note on operating leverage and expected rates of return. Finance Research Letters, 8(2), pp. 88-100.

[3]. Drew, M. E., Naughton, T., & Veeraraghavan, M. (2003). Firm size, book-to-market equity and security returns: evidence from the Shanghai Stock Exchange. Australian Journal of Management, 28(2), 119+.

[4]. Amihud, Y., (2002). Illiquidity and stock returns: cross-section and time series effects. Journal of Financial Markets 5, 31–56.

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