The Relationship Between Financial Metrics and Stock Prices: A Comparative Study of China and Vietnam’s Stock Markets

This study investigates how key financial numbers affect stock prices in the unique post-COVID-19 era, comparing China’s mature emerging market with Vietnam’s more speculative frontier market. Using data from 2,738 companies on the Shanghai (SSE), Shenzhen (SZSE), Ho Chi Minh City (HOSE), and Hanoi (HNX) stock exchanges from 2020 to 2024, the research reveals two main findings. First, core fundamentals like Earnings per Share (EPS) and Book Value per Share (BVPS) are powerful and reliable drivers of stock prices in both countries, acting as anchors in uncertain times. Secondly, the markets diverge significantly beyond these basics. China’s market follows traditional valuation logic more predictably. In contrast, Vietnam’s market displays strong speculative behavior, where investors favor profitability (high ROA) and heavily punish what they see as overpriced stocks (high P/S ratio). This research provides critical insights for investors, showing that while fundamental health is always important, understanding a specific market’s maturity and investor behavior is essential for successful valuation.