Comparative Analysis of Interfering Factors of Stock Price Return between Hong Kong and US

Abstract

Affected by the outbreak of the COVID-19, the factors affecting equity yields will become changed. This paper aims to analyze the financial information that affects stock returns in the HK market versus the US market from four perspectives-market capitalization, yield rates, correlation of major indices and liquidity. Multiple linear regressions were conducted separately for HK and US stocks and used factor analysis as a supplementary part to further explain these two markets. We show experimentally that the US stock market outperforms the HK stock market in terms of the explanatory degree of model. The solvency indicators are a class of common indicator that affects the expected rate of return in HK and US market.