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Title: Bonding and spurring : the case of Chinese companies listing on the Hong Kong Stock Exchange
Author: Yeung, Wai Ho
ISNI:       0000 0003 6963 5680
Awarding Body: Oxford University
Current Institution: University of Oxford
Date of Award: 2010
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This thesis endeavours to examine the phenomenon of Chinese companies cross-listing in Hong Kong and asks what the impact of this phenomenon is on the companies and on the Chinese market. Cross-listing in essence involves a company domiciled in one country choosing to undertake a listing in another country. There are two existing theories explaining the motivations of companies to cross-list, namely liquidity and bonding. However, these two explanations are largely restricted to company level benefits only. This thesis seeks to contribute to the law and finance scholarship by proposing a market and institutional level explanation, 'spurring', for the case of Chinese cross-listing. This thesis particularly concerns the use of cross-listing as part of an integrated strategy of domestic development - both for fund-raising by companies and for spurring the development of exchanges. This thesis can be divided roughly into three major parts. The first part (Chapters 1I and 1Il) examines the theoretical nature of cross-listing in general. Existing theories in relation to cross-listing are reviewed and the concept of spurring is defined. The second part puts the theoretical discussions into the Chinese context. Chapters IV and V, assess the degree of development in both China's and Hong Kong's markets. Chapter VI seeks to ascertain the motivations of Chinese cross-listing. This entails a comparison of China's and Hong Kong's legal frameworks governing companies' listing to reveal a regulatory gap. The third part evaluates the results of Chinese cross-listing with respect to three levels: company, market and institutional. Chapter VII finds that Hong Kong has indeed been an important fund-raising ground for China. Also, through listing in Hong Kong, Chinese companies have shown favourable improvements in various corporate governance attributes. More importantly, this thesis discovers that the new Chinese company law may have been modelled on the rules originally intended for cross-listed companies. These discoveries suggest that liquidity, bonding and spurring together can provide a full account of the motivations of Chinese cross-listing.
Supervisor: Not available Sponsor: Not available
Qualification Name: Thesis (Ph.D.) Qualification Level: Doctoral
EThOS ID:  DOI: Not available