Research On The Effect Of The Cross-listing Of Centaline Securities First H And Then A

The phenomenon of cross-listing has been around for a long time.The common cross-listing model in the world is first domestic and overseas.However,due to China's special economic environment,most listed companies in China have adopted the cross-listing path in the country after the first overseas,which is the opposite of the international market.And due to various factors such as geography,law,and company strength,most companies choose to list on the Hong Kong capital market.As a result,the status quo of China's first H after A is the mainstream cross-listing model.However,in the brokerage industry,there are only two companies listed in the first H-A cross,and the two companies basically achieved cross-listing at the same time.The other eight cross-listed brokers are the first A-H model,which crosses the mainstream of China.The listing model is the opposite.At present,there are many research literatures on the first H and then A,but the research conclusions are not the same.In addition,the author finds that many empirical papers will eliminate financial enterprises when selecting data.Therefore,the author believes that it is necessary to select classics in the brokerage industry.The case analyzes the first H-A cross-listing model and its effects.Zhongyuan Securities is the first brokerage company to realize the first cross-A and cross-listing.Through analysis,this paper believes that the cross-listing mode of H-A is the choice of Zhongyuan Securities in the difficult situation of A-share listing.This model makes the Central Plains Securities entered the capital market two to three years in advance,seized the opportunity for development,rapidly expanded the scale of the company,improved the business structure,and eased the financing constraints,but this model did not make Zhongyuan Securities a larger company in improving corporate governance.The effect,on the contrary,has caused a certain degree of decline in corporate governance.The reason may be that the ownership structure of Zhongyuan Securities is unreasonable,the state-owned shares are monopolized,and the mode of being forced to adopt the first H is mainly to obtain more funds and independence.The willingness to improve corporate governance is not strong.In addition,the listing mode of H and A later also affected the listing of Zhongyuan Securities A-shares,resulting in low P/E ratios.Compared with pure A-share listed brokers and first-A-H listed brokers,the A-share listing was reduced.The capital effect has increased the cost of capital.This paper concludes that with the establishment of Shanghai-Hong Kong Stock Connect,Shenzhen-Hong Kong Stock Connect and the continuous improvement of the mainland capital market system,the gap between domestic and overseas capital markets will continue to shrink.The mainstream model of cross-listing.Finally,the paper analyzes the content of this paper from the company level and the government level,and hopes to provide reference for other financial enterprises.