Is a Growing China a Threat to U.S. IPO Market Dominance? Comparative Securities Laws and Competition in the Market for Markets

Business Law Brief, Spring 2008

8 Pages Posted: 15 May 2008 Last revised: 16 May 2008

Bjorn C. Sorenson

Skadden, Arps, Slate, Meagher & Flom LLP

Abstract

China's young securities markets are at an all time high and attracting investors the world overworldwide who are eager to ride the progress to fortune. However, the Shanghai and Shenzhen markets also display high volatility, often jaggedly lurching up and down rather than rising at steady rates. In the United States, critics from all sides blame Sarbanes-Oxley (SOX) for the loss of market share in the competition for initial public offerings (IPOs). Despite the meteoric rise of China's capital markets, they are not a significant factor in the decline of foreign IPOs in U.S. markets, nor are they likely to be soon. However, given the proper development of consistency and confidence in Chinese markets, and the growing and increasingly liquid Chinese middle class, in the next decade the U.S. may have actual cause to worry.

Keywords: China, Chinese Stock Market, IPO, Initial Public Offering, Sarbanes-Oxley, Insider Trading

JEL Classification: F23, G15, G30, N25, O16

Suggested Citation

Sorenson, Bjorn C., Is a Growing China a Threat to U.S. IPO Market Dominance? Comparative Securities Laws and Competition in the Market for Markets. Business Law Brief, Spring 2008. Available at SSRN: https://ssrn.com/abstract=1112319

Bjorn Christ Sorenson (Contact Author)

Skadden, Arps, Slate, Meagher & Flom LLP ( email )

Four Times Square
New York, NY 10036
United States

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