Are stock price more informative after dual-listing in emerging markets? Evidence from Hong Kong-listed Chinese companies

Hung Wan Kot and Lewis Tam

Pacific-Basin Finance Journal, 2016, vol. 36, issue C, 31-45

Abstract: We study how the information and trading environments of Hong Kong-listed Chinese companies (H-share firms) change once the companies return to the China A-share markets for listing. We examine the stock price synchronicity, liquidity commonality, and stock liquidity after dual-listing and investigate three channels related to possible changes. We find that added A-share analyst coverage influences the stock liquidity, but not the price synchronicity or liquidity commonality. Moreover, Qualified Direct Institutional Investors' trading affects price synchronicity, liquidity commonality, and stock liquidity while Qualified Foreign Institutional Investors' trading affects price synchronicity and liquidity commonality, but not stock liquidity.

Keywords: H-shares; Dual listings; Stock price synchronicity; Analyst coverage; Liquidity commonality (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:pacfin:v:36:y:2016:i:c:p:31-45

DOI: 10.1016/j.pacfin.2015.12.004

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