On the Dynamic Competitive Relationship between Shanghai, Shenzhen and Hong Kong Stock MarketsBased on the Multi-group Lotka-Volterra Model

The Securities Markets during the three periods(the period before the Shanghai-Hong Kong Stock Connect mechanism came into force, the period after the implementation of the Shanghai-Hong Kong Stock Connect mechanism and be- fore the implementation of the Shenzhen-Hong Kong Connect mechanism, and the period after the implementation of the Shenzhen-Hong Kong Stock Connect mechanism) are put under examination. Based on the trading volumes of the dual-listed companies in the A share market and H share market in Shanghai, Shenzhen and Hong Kong Security Market, four groups were thus established. And the multi-group Lotka-Volterra Model was adopted to give an empirical testing of the effect of stock connect mechanism upon the dynamic competitive relationship between Shanghai, Shenzhen and Hong Kong security market. It is found that the stock connect mechanism has produced a significant effect on the competitive relationship of Shanghai, Shenz-
hen and Hong Kong stock market. The Shanghai-Hong Kong Stock Connect mechanism has promoted the relative competitive advantages of the shares of the AH dual listed companies in Shanghai; and the Shenzhen-Hong Kong Stock Connect mechanism also increases the competitive advantages of the shares of the AH dual listed companies in Shenzhen; both the Shanghai-Hong Kong Stock Connect mechanism and the Shenzhen-Hong Kong Stock Connect mechanism have helped relieve the competitive- ness between A share and H share markets.