'One Country Two Systems' as Bedrock of Hong Kong's Continued Success: Fiction or Reality?

Yeung, Horace; Huang, Flora

doi:10.2139/ssrn.2520483

Cited by 4 publications

(4 citation statements)

References 4 publications

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“…Another institutional setting of the mainland China stock markets influences firm values as well. The restrictions on the circulation of state-owned shares and legal person’s shares lead to lower liquidity of stocks traded in Shanghai and Shenzhen markets than that of the Hong Kong stock market (Yeung and Huang, 2014), which may aggravate the response to cross-border M&As when hot money flows in. By contrast, in Hong Kong stock market, with high information transparency and stringent regulation, the common M&As would probably not cause a significant change in the acquirer’s firm value:…”

Section: Theory and Hypothesesmentioning

confidence: 99%

Market reaction to the international acquisitions by Chinese firms

Lin

Wan

et al. 2020

CMS

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Purpose The purpose of this paper is to examine the effects of cross-border mergers and acquisitions (M&As) by firms in the emerging marketing on stock market cumulative abnormal returns (CARs). This research focuses on the acquiring firms in emerging markets and broadens the existing scope which highlights the M&As by firms in developed countries. Design/methodology/approach Regarding the controversial argument on the effect of cross-border M&As, the authors introduce a resource-based theory to explain the motivation of M&As by Chinese firms, conduct an event study analysis of 472 international acquisitions by Chinese firms from 2010 to 2015 and indicate cross-border M&As as a positive signal in the stock market. Findings The results reveal that cross-border M&As result in significantly positive CARs in a short term for the acquiring firms listed in mainland markets but not for that in the Hong Kong market. Furthermore, consistent with signaling theory and the investors’ heuristic thinking in decision-making, investors may adopt the technological innovation capability of the country where the target firms locate, and the acquiring firm’s preannouncement in shaping their positive judgment of the acquiring firm’s near future performance. Originality/value The authors distinguished the responses of the investors from the mainland and Hong Kong stock markets and investigated how the knowledge of the national innovation capability of the target firm and acquisition preannouncement influence the investors’ interpretation of the cross-border M&As as a market signal.

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Section: Theory and Hypothesesmentioning

confidence: 99%

Market reaction to the international acquisitions by Chinese firms

Lin

Wan

et al. 2020

CMS

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“…The good-news-chasing behaviour of investors in mainland China could be explained by the unique institutional features of stock markets in China. In mainland China, the liquidity of shares traded in the Shanghai and Shenzhen stock markets is limited compared to those in the Hong Kong market, due to significant constraints on the tradability of state shares and legal-person shares (Yeung & Huang, 2014). Given the huge amount of 'hot' money flowing around the mainland China stock markets, limited liquidity of share trading will aggregate the market reactions to the announcement of cross-border M&As.…”

Section: Market Reactionsmentioning

confidence: 99%

Do cross-border mergers and acquisitions increase short-term market performance? The case of Chinese firms

Tong

Liu

Gao

et al. 2017

International Business Review

123

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“…Hong Kong is in a unique constitutional position due to historic circumstances. At the end of British colonization, Hong Kong was returned to China under the arrangement of 'one country, two systems' (Yeung and Huang 2015;Yip 2015). The Basic Law of the Hong Kong Special Administrative Region of the People's Republic of China 1997 lays down the framework for the functioning of this system.…”

Section: Constitutionalism Gap Created By the Existing Legal Frameworkmentioning

confidence: 99%

“…However, the Basic Law recognizes that Hong Kong is a democracyhence, the autonomy provided for the governance structures. Moreover, final adjudication powers accorded to the judiciary and the citizens' fundamental rights are constitutionally protected (Yeung and Huang 2015). These provisions are able to ensure that state powers are regulated for the public benefit.…”

Section: Constitutionalism Gap Created By the Existing Legal Frameworkmentioning

confidence: 99%

The School Strike for Climate as people’s engagement in the transnational legal process and global constitutionalism

Perera

2021

Glob. Con.

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What is the significance of the School Strike for Climate from an international constitutional perspective? In this article, I compare the School Strike for Climate with the Hong Kong protests of 2019–20. Both these movements became necessary because of gaps in their countries’ respective domestic and international legal frameworks – what I term constitutionalism gaps. The immediate cause of each protest was how state and non-state actors exploited these constitutionalism gaps in the existing legal framework. Protests in Hong Kong were triggered by the attempt to enact an Extradition Law that threatened people’s autonomy, whereas the School Strike for Climate is a response to the failure of the state to deliver climate justice. Both these movements use similar strategies of advocacy and they have relied extensively on new technology. Based on this comparison, I argue that the School Strike for Climate promotes procedural and substantive values of constitutionalism at the international level, similar to the Hong Kong Protests at the domestic level. Through the School Strike for Climate, people seek to engage directly in the transnational legal process. In attempting to bridge the constitutionalism gap at the international level, the School Strike for Climate promotes values of global constitutionalism.

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'One Country Two Systems' as Bedrock of Hong Kong's Continued Success: Fiction or Reality?

Abstract: Despite the handover of sovereignty over Hong

Cited by 4 publications

References 4 publications

Market reaction to the international acquisitions by Chinese firms

Market reaction to the international acquisitions by Chinese firms

Do cross-border mergers and acquisitions increase short-term market performance? The case of Chinese firms

The School Strike for Climate as people’s engagement in the transnational legal process and global constitutionalism

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