Initial Public Offerings Chinese Style
| Autor: | Jay R. Ritter, Xinjian Shao, Yiming Qian |
|---|---|
| Rok vydání: | 2020 |
| Předmět: |
Economics and Econometrics
History Polymers and Plastics Financial economics Registration system Bidding Preferential treatment Industrial and Manufacturing Engineering Style (sociolinguistics) Accounting Key (cryptography) Business Business and International Management China Initial public offering Finance Underwriting |
| Zdroj: | SSRN Electronic Journal. |
| ISSN: | 1556-5068 |
| DOI: | 10.2139/ssrn.3682089 |
| Popis: | This paper provides a survey of China’s IPO market. We examine the following key aspects of IPOs—the policy history, IPO pricing, bids and allocation, and aftermarket trading. We show that heavy-handed regulations result in suppressed IPO offer prices and high initial returns, resulting in a high cost of going public. As a consequence, investors treat IPOs as lotteries with extreme short-term returns, with little attention to the long-term. The auction selling method, however, works in the way it is supposed to. Mutual funds bid more smartly than other investors, and their advantages are unlikely to be due to underwriters’ preferential treatment. We also discuss the latest registration-system reform and examine IPOs under the new regime. Our study lends useful insights to countries beyond China as they weigh different approaches to IPOs. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
|