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Speculating China Economic Growth through Hong Kong? Evidence from Stock Market IPOs and Real Estate Markets

Author

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  • Charles Ka Yui Leung

    () (City University of Hong Kong)

  • Edward Chi Ho Tang

    () (City University of Hong Kong)

Abstract

This paper argues that since China closes her asset markets, investors turn to Hong Kong instead. The initial public offerings (IPOs) of Chinese firms in the Hong Kong stock market and the local housing market of Hong Kong improve the prediction of each other, as they may serve as a coordinator of herds among investors. Alternative explanations such as the ¡§production conjecture¡¨ and ¡§underlying factor conjecture¡¨ are found to be inconsistent with the data. Our results are also consistent with the increasing importance of Chinese tourists in the world. Directions for future research are also discussed.

Suggested Citation

  • Charles Ka Yui Leung & Edward Chi Ho Tang, 2015. "Speculating China Economic Growth through Hong Kong? Evidence from Stock Market IPOs and Real Estate Markets," International Real Estate Review, Asian Real Estate Society, vol. 18(1), pages 45-87.
  • Handle: RePEc:ire:issued:v:18:n:01:2015:p:45-87
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    References listed on IDEAS

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    Cited by:

    1. Chong, Terence Tai Leung & Yiu, Alex Wing-Ho, 2017. "The Nexus between Visitor Arrivals and Residential Property Rents in Hong Kong," MPRA Paper 80531, University Library of Munich, Germany.

    More about this item

    Keywords

    Animal Spirits Conjecture; Production Conjecture; Underlying Factor Conjecture; Causality; Wealth Effect;

    JEL classification:

    • L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services

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