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A trend towards being normal: the 'A' share experience on the Shanghai stock exchange

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  • Anthony Yanxiang Gu

Abstract

The 'A' Share IPOs in China exhibited the highest short-term returns compared to IPOs around the world and the returns have revealed a downward trend towards a norm. Possible reasons for the highest returns include excess demand for new shares, underwriter's strong risk aversion and extremely long institutional lags. Rapid growth in IPOs accommodating the excess demand for new shares, decreasing and now normal institutional lags, lower rates of inflation, lower risk in the stock market and investors' experienced investment behaviour may partially explain the downward trend toward a norm.

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  • Anthony Yanxiang Gu, 2003. "A trend towards being normal: the 'A' share experience on the Shanghai stock exchange," Applied Financial Economics, Taylor & Francis Journals, vol. 13(5), pages 379-385.
    • Handle: RePEc:taf:apfiec:v:13:y:2003:i:5:p:379-385
    DOI: 10.1080/09603100210138529
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    References listed on IDEAS

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    Cited by:

    1. Haini Deng & Gregor Dorfleitner, 2007. "Underpricing in Chinese IPOs-some recent evidence," Applied Financial Economics, Taylor & Francis Journals, vol. 18(1), pages 9-22.
    2. Fei Jiang & Lawrence A. Leger, 2010. "The impact on performance of IPO allocation reform," Journal of Financial Economic Policy, Emerald Group Publishing Limited, vol. 2(3), pages 251-272, August.

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