Ownership structure impact on exchange rate exposure under the RMB regime reform

  • Luning JIA

Student thesis: MPhil Thesis (Lingnan)


This thesis investigates effects of exchange rate exposure upon stock returns of a large sample of Chinese firms when they are divided into SOEs and non-SOEs. I obtain the exposure estimates first and examine their determinants. By extending the current literature, I introduce the ownership structure into the framework and I compare different ownership impacts on the exposure before and after the Reform. My study shows that a SOE or non-SOE firm makes no difference in facing the exchange rate exposure before the Reform. If a firm is a SOE, the firm faces smaller exposure after the Reform. I further explore the asymmetric exposure from currency depreciation and appreciation in relation to ownership structure. I find that non-SOEs face higher exposure from appreciation than from depreciation before the Reform. But both SOEs and non-SOEs face lower exposure from appreciation than from depreciation after the Reform.
Date of Award2016
Original languageEnglish
Awarding Institution
  • Department of Economics
SupervisorJimmy RAN (Supervisor) & Gregory William WHITTEN (Supervisor)

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