This study provides a comprehensive analysis on the characteristics of Initial Public Offerings (IPOs)and listing day stock return performance of Mainland Chinese (Mainland)firms and Hong Kong SAR(HK) firms, both listed on the Stock Exchange of Hong Kong (SEHK)from 1993 to 1997 .The results indicate some significant differences in IPO returns and performance forecasts between Mainland and HK firms. However, the over-subscription ratios, the allotment ratios between small and large investors, and the intra-day price patterns on the listing day for both Mainland and HK firms are similar. These findings indicate that the HK firms are more under-priced than the Mainland firms. In addition , Mainland firms report a more optimistic earnings and dividend yield estimates than the HK firms .Finally , small investors receive similar percentages of shares from IPO underwriters for both Mainland and HK issues.
|Number of pages
|China & world economy
|Published - 2001
ASJC Scopus subject areas
- Economics, Econometrics and Finance(all)