The Analysis Of Market Differential Of The Enterprise's Share Price

Listing the shares of an enterprise in the stock market is the popular fund raising method for enterprise. In the world financial market, each district tries every method to attract enterprise to list the company's share in its stock exchange. The enterprise choice of which stock exchange to list its shares is purely a commercial decision. However, it is very confused that the company's shares perform differently in different stock exchanges. Why the shares of the same enterprise have a big difference in price performance between different stock markets? An enterprise's share price should reflect the true value of the enterprise. However, enterprise value is stated differently in different stock markets. What are the reasons for these differences?This thesis discusses the phenomenon of the same enterprise having different share prices for the same shares listed in different stock exchanges. It also analyses the macro factors in creating this phenomenon, researches how difference in investor expectation creating different stock market valuation, tries to explain underlying reasons for this phenomenon. It helps to solve the inconsistent unified strategies adopted in the international fund raising of the Chinese capital market arising from the historic situations. It facilitates the progress of the internationalization of the capital market.This thesis will concentrate on the differences in price performance of China's enterprises issuing A,B,H,N,L and S shares in different stock exchanges. These share price differences are mainly due to :(a) different local policies such as different foreign exchangecontrol policies and different hedging chances,(b) different corporate governance standards such as different listing standard, different information publicity requirement and different accounting standard,(c) investor factor(d) industry comparison factor,(e) enterprise self factor.The thesis will concentrate only on the analysis of A, B and H shares price differential performance because the number of enterprises issuing N, L and S shares is few.The thesis is divided into four chapters. Chapter 1 is general introduction. It mainly states some common concepts on share price valuation and market competition of stock markets. Chapter 2 discusses the price performance of company's shares in different stock markets. It reveals the phenomenon of China enterprises issuing A,B,H,N,L,S shares having different prices in different stock markets. Chapter 3 is the main chapter. It analyses the formation factors of this share price differential especially those factors which are special in the China stock markets. It also discusses the future trend and development of the China stock market. Chapter 4 will use China Petroleum & Chemical Corporation (Shanghai A share stock code: 600028, Hong Kong H share stock code : 0386, New York N share stock code : SNP, London L share stock code: SNP) as a case study, analyzing the factors creating the share price difference. The Conclusion concludes the factors creating the share price differential of the China enterprise issuing A,B,H,N,L,S sharesand the effects on these differences by future development in China.