A Study On Market Timing In The Process Of Dual Listing In China

Dual Listing refers to that one company lists in two different stock markets (usually cross-border). In recent years, these corporations that had listed on oversea stock markets returned to the A-stock market in Mainland and issued stocks, which is becoming a conspicuous phenomenon on the capital market. Since 2001, more and more oversea-listed corporations set off their dual-listing acts with government loosening the policy on corporations'dual-listing, especially in 2007, this phenomenon reached a climax when the A-stock market was experiencing a "bull market". Chinese scholars and securities regulatory authorities are paying more and more attention on that.Dual-listing originated in the west. So western scholars have developed some mature theories and hypothesize. In comparison, dual-listing started in china just in the 1900's, and Chinese scholars'previous studies were carried out from the western theories and hypothesize, which resulted in the lack of ourselves'achievements. It still remains to be proved whether these western theories and hypothesize fit Chinese corporations or not.We chinese capital market started relatively late, so many large state-owned enterprises had chosen to list on those developed stock markets in foreign countries or in Hong Kong. But problems such as separation between product market and capital market lead to oversea-listed corporations'poor financing. So returning to A stock market and dual-listing is an ideal way to solve the problems, and many oversea-listed did so.However, deciding when to return to the A-stock market and dual list is a significant issue, which is the main content of this thesis-market timing in the process of oversea-listed corporations'returning and dual-listing.In this thesis, on the basis of reviewing these western and chinese scholars' previous research, combined with analyzing government's historical relevant policies and domestic capital market's historical background, we will describe and annotate chinese corporations'market-timing behavior in their dual-listing process. Using listed corporations'accounting data from 2005 to 2008, we will empirically validate the existence and comparative advantage of market-listing in these corporations' dual-listing process.In this thesis, the conclusions of empirical studies show that:on the one hand, market-timing exactly existed in the process of Chinese enterprises listed overseas returning to the domestic capital market and dual listing that is, chose the time when A-share market is popular and their financial situation is good; On the other hand, oversea-listed corporations exactly possessed some comparative advantages in their returning to the domestic capital market, they does have more opportunities for market timing, compared with those corporations listed only in domestic capital market, which helped them receive more fund with the same amount of assets.Finally, from the conclusions of the study in this thesis, combined with the analysis on our government's policy on dual listing and domestic capital market environment, we could determine the suitability of the current overall outside environment for dual-listing, as well as chinese corporations'dual-listed trend in one or two years.