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Abstract

For most of non-listed corporations when they are confronting the issues of cutting capital cost, to increase the base of their investors, to develop the firm business quicker, or even to diversify the pool of investors, one of the most important alternatives that the executives and shareholders of these corporations may think is to do IPO (Initial Public Offering); which could be done in the domestic or in the foreign IPO markets. This paper firstly introduces the situation and differences among different IPO markets in Asia major financial centers that includes Mainland China, Hong Kong and Singapore. Then it will analyze the macroeconomic factors and intangible factors that influence the performances of the firms’ share prices by empirical approaches (more quantitative than qualitative).

The result of quantitative analysis shows that relative big GDP growth rate in listing areas may have positive effect on the returns of IPO stocks, and relative large inequality of wealth distribution in listing areas may have positive relationship with the returns of IPO stocks.

Recommended Citation

Jiang, Y. (2015). IPO markets in Asia financial centers: How the different IPO locations affect firms’ stock prices. Journal of Banking, Finance and Economics, 5. Retrieve from http://commons.ln.edu.hk/ljbfe/vol5/iss1/5