TY - JOUR
T1 - An alternative to privatization
T2 - The listing of H-shares in Hong Kong
AU - CHAN, Hing Lin
N1 - Copyright:
Copyright 2017 Elsevier B.V., All rights reserved.
PY - 1996
Y1 - 1996
N2 - Details how, in a bid to invigorate its state-owned enterprises, the Chinese government allows some of its large state-owned enterprises to list on the stock exchanges of Hong Kong and New York. Reports that, although at the beginning the stocks were very well received, the H-share prices started to experience a free fall when the companies reported poor earning results in the summer of 1995. Looks at several arguments which have been put forward to explain this drastic change, but observes that most of these theories miss one important dimension, namely, the institutional factor. By using this particular point of view, argues that the H-shares are poorly designed, noting, in particular, that the concerns for agency cost and asymmetric information problems have not been dealt with properly. Analyses the institutional problems of the H-share companies and, based on this analysis, outlines some preliminary recommendations on how the H-share companies can be reformed.
AB - Details how, in a bid to invigorate its state-owned enterprises, the Chinese government allows some of its large state-owned enterprises to list on the stock exchanges of Hong Kong and New York. Reports that, although at the beginning the stocks were very well received, the H-share prices started to experience a free fall when the companies reported poor earning results in the summer of 1995. Looks at several arguments which have been put forward to explain this drastic change, but observes that most of these theories miss one important dimension, namely, the institutional factor. By using this particular point of view, argues that the H-shares are poorly designed, noting, in particular, that the concerns for agency cost and asymmetric information problems have not been dealt with properly. Analyses the institutional problems of the H-share companies and, based on this analysis, outlines some preliminary recommendations on how the H-share companies can be reformed.
KW - China
KW - Government agencies
KW - Management structure
KW - Privatization
KW - Share issues
KW - Stock markets
UR - http://www.scopus.com/inward/record.url?scp=0029821338&partnerID=8YFLogxK
U2 - 10.1108/09513559610124478
DO - 10.1108/09513559610124478
M3 - Journal article
AN - SCOPUS:0029821338
SN - 0951-3558
VL - 9
SP - 40
EP - 50
JO - International Journal of Public Sector Management
JF - International Journal of Public Sector Management
IS - 3
ER -