Powerpoint slides of Group 3

Powerpoint slides of Group 3 - What if Trading Location is...

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What if Trading Location is Different from Business Location? Evidence from the Jardine Group Kalok Chan, Allaudeen Hameed, and Sie Ting Lau Andrew Tam Kit Man 04400047G Joyce Mok Kam Suen 04416647G Michelle Ching Chui Wah 04413960G Winnie Cheung Wo Li 04708331G Vinci Lau Wing Sze 04736483G
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Contents I. Background of the Jardine Group I. Data and Preliminary Analysis I. Tests and Results Relating to Comovement I. Alternative Hypothesis and Further Tests I. Conclusion I. Group’s Opinion
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Jardine Matheson Groups began its business in the early 1830’s 1876, set up first railroad in China 1879, established first ice-making factory in Hong Kong I. Background of the Jardine Group
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Jardine Matheson Group Jardine Strategic Jardine Matheson Jardine Int’l Motors I. Background of the Jardine Group
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Jardine Group Under control of London-based Keswick brothers Oldest trading company in HK Largest private employer in HK & PRC in early 1990s Contributed about 60% of net profit to the group About 2/3 group’s assets >95% stock trading volume in HK I. Background of the Jardine Group
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Before delisting, About 10% HK’s stock market capitalization Jardine Matheson, Jardine Strategic, Dairy Farm, Hongkong Land and Mandarin Oriental were constituent stocks in Hang Seng Index I. Background of the Jardine Group
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Delisting, Reasons Hostile takeover threat in 1980s, control of Wharf Holdings (a major Jardine company) by Mr. Y.K. Pao Mr. K.S. Li bought a minority share in Jardine Matheson. Then sold back to Jardine at a higher price. Concern with uncertainty in HK future after 1997 and want to continue its corporate governance under a British legal system HK Securities and Futures Commission refused to I. Background of the Jardine Group
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Delisting, 1984, shifted legal domicile to Bermuda 1994, delisted Jardine Matheson & Jardine Strategic 1995, delisted Hongkong Land, Mandarin Oriental and Dairy Farm 2000, delisted Jardine International Motors I. Background of the Jardine Group
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Jardine Group Jardine Strategic Jardine Matheson Jardine Int’l Motors Dairy Farm Hongkong Land Mandarin Oriental ×1994 ×1995 I. Background of the Jardine Group Delisting ×2000
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After delisting, Core business remains in HK & Mainland China >90% trading activity shifted from HK to Singapore Business location stock trading location I. Background of the Jardine Group
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Trading location If international financial markets are perfectly integrated Stock trading behavior Stock price movements should not be affected by trading location I. Background of the Jardine Group ? ? ?
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Type of data Daily Data daily stock returns daily trading volume (from PACAP database) Intraday Data STII price for every 15 min. interval
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Powerpoint slides of Group 3 - What if Trading Location is...

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