Title: From Wall Street to Hong Kong: The Value of Dual Listing for China Concept Stocks
Speaker: Chen Zhuo, Associate Professor, Wu Yishu School of Finance, Tsinghua University; Deputy Director, Global Mother Fund Research Center, Tsinghua University; Recipient of the National Natural Science Foundation of China Excellent Young Scientists Fund. Chen Zhuo graduated from the Kellogg School of Management, Northwestern University, USA with a Ph.D. in Finance in 2014. Prior to that, he obtained a Master of Economics degree from Duke University, USA and a double bachelor’s degree in Engineering and Economics from Peking University. His research fields are empirical asset pricing and Chinese financial markets, including China’s bond market, local government debt, quantitative investment strategies, quantitative risk management, and financial econometrics. His research results have been published in a number of top domestic and foreign journals such as "Journal of Finance", "Journal of Financial Economics", "Review of Financial Studies", "Management Science", "Economic Research Journal", "China Economic Quarterly" and "Journal of Financial Research". His research results have won a number of international and domestic academic awards, including the DFA Outstanding Paper Award of "Journal of Finance", the Liu Shibai Economics Award, the Youth Achievement Award of Scientific Research in Institutions of Higher Education (Humanities and Social Sciences), the Nomination Award of the Aoki Masahiko Economics Paper Award, the "Arthur Warga" Best Fixed Income Paper Award of the SFS Cavalcade, and the Best Paper Award of the China Financial Research Conference.
Abstract: The U.S. stock market has long been the preferred venue for foreign firms and global investors. However, recent cross-border regulatory tensions between China and the U.S. have exposed many China concept stocks listed in the U.S. to significant delisting risks, forcing them to seek dual listings on the Hong Kong Stock Exchange. In this paper, we use the U.S. Securities and Exchange Commission (SEC)’s adoption of the final amendments to the Hold Foreign Companies Accountable Act (HFCAA) on December 2, 2021, as a natural experiment to quantify the economic value of dual listing. We estimate that, prior to the shock, China concept stocks with dual listing status had an average return that was 14.88% higher than that of stocks listed only on U.S. exchanges during a three-month market adjustment period, representing a market capitalization of $8 billion. Our findings pass a series of robustness tests, including parallel trend tests, alternative treatment and control groups based on China concept stocks that are eligible but not yet dual-listed, and various subsample and placebo analyses. Beyond stock returns, dual-listed China concept stocks also suffered smaller adverse impacts on trading volume, volatility, and liquidity. Our results highlight the significant economic impact of escalating China-U.S. political tensions on global financial markets.
Date & time: 23 September 2025, 10:00-11:00
Venue: B321, Zhixin Building, Central Campus, Shandong University
