China's Financial Services Industry: The Intra-Industry Effects of Privatization of the Bank of China Hong Kong

Posted: 30 Mar 2011 Last revised: 1 Jan 2014

See all articles by Zhian Chen

Zhian Chen

University of New South Wales - School of Banking and Finance; Financial Research Network (FIRN)

Donghui Li

UNSW Australia Business School, School of Banking and Finance

Fariborz Moshirian

Institute of Global Finance, UNSW Business School

Date Written: October 17, 2008

Abstract

The purpose of this paper is to discuss and apply some of the key issues and lessons from similar privatization in other parts of the world to the partial privatization of the Bank of China Hong Kong (BOCHK). The empirical results of this paper indicate that some of the banks and non-bank financial institutions reacted negatively to the partial privatization announcements of the BOCHK. The empirical results also show that HSBC, the largest bank in Hong Kong had no significant reaction to the restructuring announcement or the listing announcement of the BOCHK. However, the Hang Seng Bank, the third largest bank in Hong Kong, suffered a loss after the announcement of the BOCHK listing. Compared with the banks and non-bank financial institutions in China, the BOCHK over-performed the rival firms in Mainland China one year after its partial privatization.

Keywords: G15, G25

JEL Classification: privatization, ownership and control, financial institutions' reactions

Suggested Citation

Chen, Zhian and Li, Donghui and Moshirian, Fariborz, China's Financial Services Industry: The Intra-Industry Effects of Privatization of the Bank of China Hong Kong (October 17, 2008). Journal of Banking and Finance, Vol. 29, 2005, Available at SSRN: https://ssrn.com/abstract=1286280

Zhian Chen

University of New South Wales - School of Banking and Finance ( email )

Kensington
High St
Sydney NSW 2052
Australia

Financial Research Network (FIRN)

C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia

HOME PAGE: http://www.firn.org.au

Donghui Li (Contact Author)

UNSW Australia Business School, School of Banking and Finance ( email )

Sydney, NSW 2052
Australia

Fariborz Moshirian

Institute of Global Finance, UNSW Business School ( email )

Sydney, NSW 2052
Australia
+61 2 93855859 (Phone)
+61 2 94877519 (Fax)

Here is the Coronavirus
related research on SSRN

Paper statistics

Abstract Views
835
PlumX Metrics