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 journalArticlepeer-review

8 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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