Analysis on Economic Effects of Chinese Concept Stock Returning to A Stock Market under Market Segmentation
Market segmentation is a common phenomenon.There is foam in A stock market.With extremely fluctuation of market and shortage of potential resources,Chinese concept stock in Hongkong market returning to A stock market becomes a selection to stabilize our market.The analysis of economic effects result from Chinese concept stock returning shows that firstly the returning will enrich investment variety and be helpful to increase investor's welfare.Secondly,for premium of A stock is higher than that of H stock,IPO pricing of Chinese concept stock returning may be higher than its original H stock price,so there may be a phenomenon that wealth is shifted from A stock investors to Chinese concept stock investors.