How Shenzhen and Hong Kong generated an informal precursor to international investment laws

Date Presented:

February 7

Abstract:

This paper explores how three different actors—retail investors, investment enterprises, and the Chinese government and its regulatory agencies—engage with one another through their participation with the Chinese stock exchanges. From the outside, the Chinese stock exchanges do not appear to be well functioning mechanisms; insider trading is rife, companies do not publish accurate financial data, and many retail investors use the exchanges as a vehicle to gamble their money. This thesis will investigate how the different actors rationalize participating in the stock exchanges through an adapted cost-benefit analysis, and consequently hold the system together.