Privatization Through an Overseas Listing: Evidence from China's H-Share Firms

26 Pages Posted: 22 Nov 2005

See all articles by Jin Jia

Jin Jia

Motorola Singapore

Qian Sun

Fudan University

Wilson H.S. Tong

Hong Kong Polytechnic University - School of Accounting and Finance; Hong Kong University of Science & Technology (HKUST) - Department of Finance

Abstract

We study the partial privatization of 53 Chinese state-owned enterprises (by their listings on the Hong Kong Exchange over the period July 1993 to December 2002. We find that listing has led to a median increase of 70% in real net profits, 80% in real sales, 50% in capital spending, and a mild but nonsignificant improvement in coverage ratios, but no improvement in return on sales and a significant underperformance of returns against several market index benchmarks. Further investigation shows that firm performance is negatively related to state ownership, but positively related to legal-personal ownership and foreign ownership.

Suggested Citation

Jia, Jin and Sun, Qian and Tong, Wilson H.S., Privatization Through an Overseas Listing: Evidence from China's H-Share Firms. Financial Management, Vol. 34, No. 3, pp. 5-30, Autumn 2005, Available at SSRN: https://ssrn.com/abstract=853384

Jin Jia

Motorola Singapore

12 Ang Mo Kio St. 64
Ang Mo Kio Industrial Park 3
Singapore 569088
Singapore

Qian Sun

Fudan University ( email )

No. 670, Guoshun Road
No.670 Guoshun Road
Shanghai, 200433
China
86 21 25011094 (Phone)

Wilson H.S. Tong (Contact Author)

Hong Kong Polytechnic University - School of Accounting and Finance ( email )

M715, Li Ka Shing Tower
Hung Hom, Kowloon, Kowloon
Hong Kong

Hong Kong University of Science & Technology (HKUST) - Department of Finance ( email )

Clear Water Bay, Kowloon
Hong Kong
852-2358-7679 (Phone)
852-2358-1749 (Fax)

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