State-owned Enterprises Going Public: The Case of China

HKUST Social Science Working Paper

29 Pages Posted: 8 Feb 2002  

Xiaozu Wang

City University of Hong Kong (CityUHK) - Department of Economics & Finance

Lixin Colin Xu

World Bank - Development Research Group (DECRG)

Tian Zhu

Hong Kong University of Science & Technology (HKUST) - Division of Social Science

Date Written: December 2001

Abstract

Public listing is a key and unique reform measure for large state-owned enterprises (SOEs) in China. Using a panel data set that contains both pre- and post-listing financial and ownership information on publicly listed firms in Shanghai and Shenzhen Stock Exchanges, we explore the effects of public listing in China. We find that using public listings as a means to reform SOEs has not worked wonders: company performance in the post-listing years are sharply lower than their levels in both the pre-listing years and the initial public offering years. Moreover, the effects of public listing on performance are not significantly affected by the percentage of state shares or of the total shares held by top shareholders.

Keywords: state-owned enterprises, public listing, corporatization, reform, China

JEL Classification: P31, P27, G30

Suggested Citation

Wang, Xiaozu and Xu, Lixin Colin and Zhu, Tian, State-owned Enterprises Going Public: The Case of China (December 2001). HKUST Social Science Working Paper. Available at SSRN: https://ssrn.com/abstract=298501 or http://dx.doi.org/10.2139/ssrn.298501

Xiaozu Wang

City University of Hong Kong (CityUHK) - Department of Economics & Finance ( email )

83 Tat Chee Avenue
Kowloon
Hong Kong
852 2788 7407 (Phone)

Lixin Colin Xu

World Bank - Development Research Group (DECRG) ( email )

1818 H Street, N.W.
MC 3-427
Washington, DC 20433
United States
202-473-4664 (Phone)
202-522-1155 (Fax)

HOME PAGE: http://econ.worldbank.org/staff/cxu

Tian Zhu (Contact Author)

Hong Kong University of Science & Technology (HKUST) - Division of Social Science ( email )

Division of Social Science
Clear Water Bay
Clear Water Bay, Kowloon
Hong Kong

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