The Banking Stock Performance Singapore vs. Hong Kong

In this paper, our group evaluates and compares the resilience of Hong Kong and Singapores banking stocks using the Event Study Methodology. We have accomplished this by studying the impact of three events which are the 2008 Financial Crisis, the COVID-19 pandemic, and the Russia-Ukraine War on Hong Kong and Singapores banking stocks. We choose the leading stocks in Hong Kong and Singapore, HSBC, and DBS respectively, and derive our expected return by constructing a linear regression model between the banking stock returns and the market returns. We then subtract the Expected Return from the Actual Return to find the Abnormal Return. After that, we use a confidence interval to test and compare the significance of the Cumulative Abnormal Return between HSBC and DBS. From our results, our group concludes that although Hong Kongs banking stock performed better in the early days, Singapores banking stock has grown to be more resilient.