题目：Overseas Listing as a Policy Tool: Evidence from China’s H-shares

主讲人：Sun Qian, University of Fudan

Abstract

We investigate why the Chinese government chooses to share-issue privatize (SIP) its state-owned enterprises (SOEs) in Hong Kong instead despite the benefit of facilitating domestic stock market development if SIP in China (Subrahmanyam and Titman, 1999) and the higher cost to list in Hong Kong. We address this issue by arguing that the positive effect of SIPs on the development of the domestic market may have limitations, especially when the domestic market is not well developed and cannot absorb rapid and large-scale SIP activities. To maintain domestic market order, it may be optimal to carry out a SIP in overseas markets. Furthermore, by listing shares in developed overseas markets, SOEs from the less developed domestic markets could leverage on their better accounting, governance, and legal standards. By examining a sample of 92 Chinese firms listed in Hong Kong and the relevant control samples of purely domestically-listed Chinese firms during the period 1993-2006, we find supporting evidence for both arguments.