A Comparison Of The Market Effect Of Stock Market Repurchase Between China And Russia

Since appearing of new capital market, people were expected that it development will bring new vitality. The new capital market appeared in recent years, it have an active role for the country’s economic development. However, role of the new capital markets(such as Brazil, India, Turkey) in recent years did not bring desired results. In these capital market countries, China and Russia looks better as their fast development. In this paper we focus on China and Russia’s stock market, use the stock repurchase window effect to explain the function of new capital market.The stock market plays a very significant role in the modern economy. China’s and Russian stock market are relatively young compared to the U.S. and some other Europe markets, but they growing up quickly. Chinese stock established Since Shanghai Security exchanges in 1990, market recorded impressive growth in first decade, and stock market plays an important role in Chinese economic development now. Russia is similar to China in some degree, and Russian stock market is open in 1990. In Russia, stock market specific characteristics are determined by the economy in transition, and by the fact that it was developing during the period of active economic and other reforms. This has a strong impact on the functions and operating manner of the market.Since share repurchase was not popular in those countries, we compare the effects of two countries stock repurchase market in China and Russia, in order to find out their similarities and differences. According to those similarities and differences, we try to analyze why two development countries are still in the implementation of stock repurchase different reasons. Than from those reasons, for Chinese companies in time of stock repurchase, we provide the essence of Russia’s stock repurchase practice, for its improvement, and the same time for Chinese stock repurchase market we provide some essence of Russia’s successful experience.This paper is divided to 5 chapters; the first part is an introduction. It’s mainly to explain the background, research ideas, significance, main content and innovation of this article. The second chapter is theoretical and literature review, it includes announcement effect and theory of efficient of the market, and the literature effect of the article. The third chapter is introducing Russian and Chinese repurchase stock market. This part explain Russian and Chinese stock market history and stock repurchase policy and concept. The fourth chapter is stock repurchase market factor influence, which includes the research hypothesis, related variables and analyze of both markets. The final chapter is conclusion and prospect.