HSBC and J JPMorgan Chase bank are two publicly traded companies that belong to the same industry, which is the banking industry. These two companies compete for the market on different levels since whereas HSBC is an American company; Chase bank is a multinational company that is categorized as ADR (American Depository Receipts).
The performance of JP Morgan Chase Bank seems to be fluctuating normally and this can be attributed to several factors that can be either internal or external.
On the same market, listing is the HSBC, which is an American company, but its ratings are not as pleasant as we may expect them to be. This may be influenced by different factors, which may not be disclosed to the public or may be caused by external factors.
The difference in the share price as depicted by the table can be attributed to:
i. Investment restrictions
Chase bank is known to adhere to a certain rule in investment. Due to their presence as a multinational institution, it is able to invest in different countries and therefore is forced to follow the restrictions for investment. HCBS on the other hand operates in the American states only and therefore this makes it less strict in following the investment restrictions. This is because it has a small area of jurisdiction that is easily manageable unlike the chase bank. This might be the cause for the differences in share value.
ii. Performance assessment
Chase Bank in the different nations where it operates carries out frequent performance assessment tests. This is mainly aimed at improving competence in the different zones where the bank operates. Having this in mind, we realize that frequent assessment of the performance of the Bank ensures that the service provision is at its highest and therefore individuals are willing to invest here.
Chase Bank operates in many nations and therefore it has obtains popularity all across. This popularity increases its productivity hence increasing its share listings in the stock exchange.
iv. Foreign currency
Due to the fact that Chase bank operates in many countries, it is able to obtain its value in different currencies hence giving it an edge above other competitors. This works for the benefit of the Bank.