Chinese Stocks Research

The economic development in China, which is accompanied by the China's economic reformation, has been growing in an amazing way. It will be a good way for the offshore investors to participate in the capital market in the meanwhile gaining the harvest of the growth in China. The china-concept stocks are so popular that they become the glamour stocks. Beginning with the macro and micro economic points of view, this paper is going to deal with china-concept stocks that trade in different markets and discuss stocks' relationships in the markets.In this paper, there are three kinds of china-concept stocks, which were listed in Hong Kong, Taiwan and the US, were collected in order to discuss their relationships with their original listed markets, with the China market and with each others. With unit-root tests, granger causality tests, impulse response function and forecast error variance decomposition, the paper would like to present·the stabilities, the causalities, the impulsive responses and the fluctuation interpretations to the data.In the discussion of the relationships with their original listed markets, the US market index played the important role in the local china-concept stocks, but in Taiwan, the local china-concept stocks influenced the Taiwan market a lot. The results showed that, China market had power over the china-concept stocks in Hong Kong, but was weak to the stocks in Taiwan and the US. And three kinds of China-concept stocks were relatively independent to each others because they got most of influences from their own index.In the end, the research gave the conclusion that the US market is the most important indicator from the point of the investment. And China has to make its market stronger if it is going to set up the world financial center in the China.