ChiNext IPOs' initial returns before and after the 2013 stock market reform: What can we learn?

Zhong-guo Zhou, Monica Hussein and Qi Deng

Emerging Markets Review, 2021, vol. 48, issue C

Abstract: We examine ChiNext IPOs' performance before and after the 2013 stock market reform. Majority of firm-level characteristics differ significantly over the two sub-periods. The initial return looks normal before the reform. It exhibits a uniform distribution truncated at the maximum 44% initial cap imposed by the reform thereafter and the cumulative return, based on listing day closing price keeps rising at a steady pace over the 1st month. The 2013 reform pushes the ChiNext IPO market off its track of becoming more efficient. Instead, it widens income gap in China. Our findings and recommendations support the 2020 new regulatory changes.

Keywords: Stock market reform; IPOs' initial returns, cumulative returns and return volatility; Market efficiency versus even income distribution; A less-regulated, more transparent, efficient and market-oriented IPO environment (search for similar items in EconPapers)
JEL-codes: G12 G14 G15 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ememar:v:48:y:2021:i:c:s156601412100025x

DOI: 10.1016/j.ememar.2021.100817

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