Are stock price more informative after dual-listing in emerging markets? Evidence from Hong Kong-listed Chinese companies

Hung Wan KOT*, Lewis H.K. Tam

*Corresponding author for this work

    Research output: Contribution to journalJournal articlepeer-review

    15 Citations (Scopus)

    Abstract

    We study how the information and trading environments of Hong Kong-listed Chinese companies (H-share firms) change once the companies return to the China A-share markets for listing. We examine the stock price synchronicity, liquidity commonality, and stock liquidity after dual-listing and investigate three channels related to possible changes. We find that added A-share analyst coverage influences the stock liquidity, but not the price synchronicity or liquidity commonality. Moreover, Qualified Direct Institutional Investors' trading affects price synchronicity, liquidity commonality, and stock liquidity while Qualified Foreign Institutional Investors' trading affects price synchronicity and liquidity commonality, but not stock liquidity.

    Original languageEnglish
    Pages (from-to)31-45
    Number of pages15
    JournalPacific Basin Finance Journal
    Volume36
    DOIs
    Publication statusPublished - 1 Feb 2016

    Scopus Subject Areas

    • Finance
    • Economics and Econometrics

    User-Defined Keywords

    • Analyst coverage
    • Dual listings
    • H-shares
    • Liquidity commonality
    • Stock price synchronicity

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