We would like to thank the anonymous referee for his helpful comments and suggestions, which significantly improved the quality of the paper. All remaining errors are ours. The corresponding author acknowledges the RGC Grant (No. PolyU 5334/03H) from the Hong Kong SAR Government.
Privatization Through an Overseas Listing: Evidence from China's H-Share Firms
Version of Record online: 27 OCT 2008
Volume 34, Issue 3, pages 5–30, September 2005
How to Cite
Jia, J., Sun, Q. and Tong, W. H.S. (2005), Privatization Through an Overseas Listing: Evidence from China's H-Share Firms. Financial Management, 34: 5–30. doi: 10.1111/j.1755-053X.2005.tb00108.x
- Issue online: 27 OCT 2008
- Version of Record online: 27 OCT 2008
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.