What Explains the High Returns to the IPOs of China's A‐Shares?

Sheng‐gang Yang, Tian‐yi Wang and Shun‐cai Jiang

Journal of Economic Policy Reform, 2007, vol. 10, issue 4, 297-308

Abstract: This paper investigates the initial returns of Chinese A‐share initial public offerings (IPOs) under the split‐share structure before 2005. The split‐share structure refers to the coexistence of shareholders of tradable shares and shareholders of non‐tradable shares. The average initial return is much higher than those of other countries, even though this has been declining. We argue that the split‐share structure causes the initial returns of Chinese IPOs to be very high level in the beginning, and then to decrease slowly because of the institutional transition and the path‐dependent characteristics. With the reform of non‐tradable share offerings, the average initial return of Chinese IPOs is likely to fall.

Date: 2007
References: View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://hdl.handle.net/10.1080/17487870701552012 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:jecprf:v:10:y:2007:i:4:p:297-308

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/GPRE20

DOI: 10.1080/17487870701552012

Access Statistics for this article

Journal of Economic Policy Reform is currently edited by Dr Judith Clifton

More articles in Journal of Economic Policy Reform from Taylor and Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().