IPO waves in China and Hong Kong

Gucbilmez, U. (2015) IPO waves in China and Hong Kong. International Review of Financial Analysis, 40, pp. 14-26. (doi: 10.1016/j.irfa.2015.05.010)

Abstract

We analyze the anatomy of IPO waves in China and Hong Kong and draw comparisons with the US IPO cycles. The lead–lag relationship between IPO initial returns and IPO volume observed in the US is absent in these two Asian markets. Similar to the US, IPO volume in Hong Kong is sensitive to changes in market conditions and exhibits seasonal variations. In sharp contrast, however, Chinese IPO activity is much less responsive to past market returns and volatility. Surprisingly, hot markets still emerge in China, not because of market forces as in the US and Hong Kong, but due to regulatory choices.

• Item Type: Articles
• Status: Published
• Refereed: Yes
• Glasgow Author(s) Enlighten ID: Gucbilmez, Dr Ufuk
• Authors: Gucbilmez, U.
• College/School: College of Social Sciences > Adam Smith Business School > Management
• Journal Name: International Review of Financial Analysis
• Publisher: Elsevier
• ISSN: 1057-5219
• ISSN (Online): 1873-8079
• Published Online: 21 May 2015
• Copyright Holders: Copyright © 2015 Elsevier Inc.
• First Published: First published in International Review of Financial Analysis 40:14-26
• Publisher Policy: Reproduced in accordance with the publisher copyright policy