Speaking at the London Stock Exchange, Professor Franklin Allen, Executive Director of the Brevan Howard Centre for Financial Analysis, presented his findings on the Chinese Stock Market.
Professor Allen’s presentation was the third talk in the Imperial in the City series, which brings key research into the heart of London. This new suite of events led by Business School academics is designed to showcase Imperial’s expertise in tackling big business challenges.
Starting his speech Professor Allen outlined that the Chinese stock market, including stocks listed and traded in Shanghai, Shenzhen and Hong Kong, is the second largest in the world. The underperformance of this market, especially since the recent global financial crisis, relative to both developed (e.g. US) and large emerging economies (e.g. Brazil, Russia, India and South Africa) has been striking.
The talk provided attendees with an understanding of the determinants of the underperformance of the overall Chinese market as well as stocks in each major industry. The poor performance is not due to undervaluation of Chinese companies; instead, factors such as the IPO and delisting processes, corporate governance related to self-dealing, and information disclosure, are main contributors.
“The London Stock Exchange provided an apt location for Franklin’s speech,” said Tim Gordon, the event’s co-ordinator. “Professor Allen’s presentation is an excellent addition to the insightful series following Professor Nelson Phillips’ presentation on leadership in the digital age and Dr Mark Kennedy’s discussion on Market Disruption.”
You can view Professor Franklin Allen’s slides from his presentation here.
The next talk in the series will be given by George Yip, Professor of Marketing & Strategy and Associate Dean for Executive Programmes, who will discuss Strategic Transformation with John Allan CBE, Chairman of Tesco and Barratt Developments.