Research On The IPO And After IPO Pricing Behavior Of Cross-listing Of Chinese Companies

Cross-listing is the exchange behavior that same company in different exchange market for securities issued to different investors and publicly listed stock markets.Enterprises in the process of economic competition in the market, based on commercial motives (to expand market share, corporate reputation, improve core competitiveness) and financial motivations (to raise capital and reduce financing costs and improve liquidity of the assets) is considered, and in its drive next to enter the international and domestic capital markets; the same time, China's rapid development has attracted the concern of major stock exchanges around the world, its competitive position and for its own interests, continue to attract high quality potential of domestic listed company resources to further promote China wave of cross-border cross-listing. Meanwhile, the cross-listing of the current international financial market as a major bright spot, and the related research is becoming a major topic of financial research.Since December 1990 the establishment of the Shanghai Stock Exchange so far, there are thousands of companies of various ownership to overseas listing of domestic companies, or directly within the corporate interests involved in the form of red chips in the offshore listing, as well as hundreds of mainstay as the main state-owned holding companies in domestic and foreign cross-listing, especially in the A+H form the majority.A large-scale Chinese companies listed overseas began in 1993, Qingdao Beer issued in Hong Kong H shares and A shares issued in the domestic market, the phenomenon of cross-listing of domestic companies is increasing. Especially after 2000, central state-owned companies as the core of a large number of mainland people's livelihood companies and monopoly industries and the four major state-owned commercial banks, led by financial and insurance companies have landed in IPO, Hong Kong-based international capital markets, become international public company. For the same underlying asset, after cross-listing of securities in different markets showed price differences on the issue is the recent focus of attention of the academic community.Cross-listing and IPO price behavior problems are relatively new researches content for this inspection on existing literature, sorting and analysis, this paper through the efficient market theory, the pricing difference between inside and outside the cross-distribution, market segmentation theory and the regulatory system differences in terms of A-share and H share prices were qualitative differences in the situation analysis and comparison and evaluation, while cross-IPO price behavior of listed companies, broken down into three interrelated sub-items were studied.In this article, the most important for Chinese firms cross-listing of A+H model of empirical studies of IPO price behavior, measure at this stage, the market value of the two functions and found that the two markets are inherently linked, through the evidence to answer the questions and verification of the aforementioned focus.1. The research of the first day of the two markets IPO Underpricing for the cross-listing companies.Underpricing research is based on the standing of the issuing company, through the statistics the two markets, a market and the extent of differences in the secondary market to find the factors that determine these differences, by comparing the differences, closer examination of the link between the distribution markets.2. Cross-listed company after the IPO long-term trend studies.Long-term trend of the study was cross-standing point of view of investors, listed companies, post-IPO long-term price trends in the balance, as well as comparative cross-listing of listed companies in different trends in long-run equilibrium differences.3. According to characteristics of cross-listed companies, but also need to look at the market price of the two cointegration issues, and trying to find domestic pricing gains and losses relating to the answer.Full-text includes seven chapters, the structure is:Chapter I:Introduction part, through the presentation of overseas listing of Chinese companies derive full profile research background, research object and meaning, describes the research method, the basic framework of the papers referred to do with the command of the total.Chapterâ…¡:literature review related research at home and abroad, which provides information on the cross-listing at home and abroad, Law of One Price, the local pricing, IPO underpricing and long-term trends as well as cross-listed companies, the price cointegration study of the main points and trends on the status of related issues were introduced domestic and foreign research and evaluation.Chapter III:Adoption of the efficient market theory, distribution pricing, market segmentation, and regulatory systems point of view of A-share and H share price differential status of qualitative analysis and comparison and evaluation.Chapterâ…£:A+H cross-listed companies, IPO underpricing behavior of research and analysis, this chapter is the full text of an important one of the three empirical studies. A+H by a comparative analysis of cross-listed companies to issue shares of underpricing phenomenon, compared to the same company, A-shares and H-share market overpricing and analyze the factors to study cross-listed companies in different markets IPO between primary and secondary the market pricing efficiency and differences. Empirical findings show that cross-listed companies in the A-share market of the explanatory variables closer to market factors associated with the transaction indicators, explanatory variables in the H-share market is close to the company itself to grow and market operations, a combination of indicators and other factors.Chapterâ…¤:A+H cross-listed company after the IPO long-term price trends in comparative research and analysis, this chapter is the full text of an important one of the three empirical studies. IPO long-term trend analysis of an IPO research is complete integral and important component of the process. This chapter uses the modified Fama-French model, using a four-factor model for the A+H cross-listed companies, long-term price trends of the empirical studies and concluded that long-term trend from the price in terms of overseas listing of the long-term price fluctuations in a peaceful nature, from the stability of the total market value after the listing of study, significantly higher than that of listed overseas listing, but with the completion of share reform in 2005, domestic financial innovation and the domestic A-share market continues to open up (including the introduction of QFII system), A shares market has long been weak trend is gradually weakened, and the international mature markets continued to narrow the gap.Chapter VI:Part A+H cross-listed companies, stock price co-integration research and analysis, this chapter is the full text of an important one of the three empirical studies. Through this chapter, A+H cross-listed companies, stock price co-integration between research, obtained the two markets, the conclusions of cointegration relationship exists, and the two post-share reform market development, with recommendations.Chapter VII:Conclusions and recommendations. According to the full text of theoretical explanations and empirical research, responded to the article to set the initial research content, and found new problems to give a certain amount of interpretation and presentation of the relevant constructive comments.Full text of the pairs of cross-listed companies, and its subsequent IPO price behavior, whether in research perspectives and content, or object of study and methods, etc. have done a number of innovative research, the integrated use of financial economics, quantitative economics, management, control theory and other fields of theory and knowledge, from the microscopic point of view about the issue of cross-listing of Chinese companies a relatively systematic in-depth research, thesis research in summing up domestic and international IPO price behavior modeling studies based on empirical analysis. Paper has significant innovations mainly in the following four areas than the existing literature has:1. Research Angles and content creation.At home and abroad for the issuer in a single stock on the pricing of IPO, Underpricing, or long-term price behavior of a lot, but on Chinese companies in various cross-listing of the IPO on the stock market pricing behavior and underpricing as well as different market places, the relationship between long-term price behavior of the systematic study of almost in a blank space.2. Rejection of the past course of the study on the IPO price behavior separated IPO underpricing and long-term trends in research methods, the first time, cross-listed companies, IPO underpricing, long-term trends and different transaction price listing on cointegration issues such as the organic combination of a comprehensive analysis, describing the IPO and the subsequent cross-listed companies, price behavior. 3. In the study of data processing in general and individual stocks using a combination of analytical methods. Conducting cross-listing IPO underpricing and long-term trends in the research process, using the overall research methodology; conducting cointegration of the research process research and development methods are using individual stocks.4. Application of expansion and improvement of the Fama-French four-factor model of cross-listed companies on the IPO long-term price trends in the study.This paper, long-term trend of cross-listed companies application process amended on Fama-French four-factor model to analyze the long-term excess returns. Prior to the application of national literature than three factor model of stock returns over long-term issues are more improved.In this paper, the original classic three-factor model based on the introduction and the regression coefficient Momentomi and mi. For the T from the starting date of held-to-day paid the first half of the high price paid excluding the first half of the low stock price differences between the average pay for the shares prior to the performance of risk premium pay the regression coefficient, thus avoiding the three-factor model in the calculation of the long-term excess returns generated IPO deviation, re-establishment of deviation and skew deviation. By extending the application of Fama-French model, in the interpretation, analysis A shares and H shares a long-term relationship between the vulnerable and price volatility has made a complete conclusion.Research findings show that the A+H cross-listing benefit the process of internationalization of domestic enterprises, while the article also raised in the cross-listing or listed overseas practice to do during the critical "support to A-share market as the center of the cross-listing model, in order to prevent offshore fund acquisitions of domestic companies listed overseas cash in the red-chip model "of policy recommendations..