Download pdf
Impacts of China's Stock Market Registration System and Future Insights
- 1 Weatherhead School of Management, Case Western Reserve University, Cleveland, Ohio, US, 44106, US
* Author to whom correspondence should be addressed.
Abstract
This study will explore the impact of the registration system on the stock market after China changed from the approval system to the registration system. Under the approval system, the government monopolizes the right to review stock listings in the approval system. Therefore, this situation not only easily creates the government's monopoly power but may also lead to companies over-packaging IPO application materials to increase the possibility of passing the review. This will cause the government to spend too much time and energy conducting substantive studies of corporate application materials, reducing work efficiency. Therefore, the registration system will be officially implemented in March 2023. The proposed research will investigate the issuance and distribution of new shares, changes in the price-earnings ratio, and changes in the latest lottery rate and yield, as well as the changes in the hairstyle system and how it performed after listing (industry, valuation, and average growth rate) to conduct a comprehensive analysis. Thus, the existing research results are used to propose the impact of the registration system on the Chinese stock market.
Keywords
The Chinese stock market, approval system, registration system, IPO, influence of the Chinese stock market.
[1]. China to Introduce Registration-Based IPO System in Securities Market, Yurou Yin, Mon, 06 Mar 2023, P3/P4, https://www.globaltimes.cn/page/202303/1287552.shtml#:~:text=China%20launched%20the%20new%20listing,and%20the%20Beijing%20Stock%20Exchange.
[2]. Xinzhen, L. . (2023). Taking stock of the market. Beijing Review: English, 66(7), 1.
[3]. Registration based on IPOs and how they will shape in China’s capital market, April 26, 2023, by Chenran Tian, https://www.acuitykp.com/blog/registration-based-ipos-shaping-china-capital-market/#:~:text=The%20approval%2Dbased%20IPO%20process%20centralises%20the%20CSRC's%20authority%20by,and%20reduce%20risk%20to%20investors.
[4]. Mandiratta, P. , & Bhalla, G. S. . (2023). Analyzing the stock market performance of central public sector enterprises disinvested through public offering mode: indian evidence. Benchmarking: An International Journal.
[5]. Die, W. , & Yi, T. . (2023). Can option trading volume forecast volatility? evidence from shanghai stock exchange 50etf option. Systems engineering theory and practice, 43(3), 755-771.
Cite this article
Zhou,M. (2024). Impacts of China's Stock Market Registration System and Future Insights. Advances in Economics, Management and Political Sciences,106,24-33.
Data availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
Disclaimer/Publisher's Note
The statements, opinions and data contained in all publications are solely those of the individual author(s) and contributor(s) and not of EWA Publishing and/or the editor(s). EWA Publishing and/or the editor(s) disclaim responsibility for any injury to people or property resulting from any ideas, methods, instructions or products referred to in the content.
About volume
Volume title: Proceedings of the 3rd International Conference on Business and Policy Studies
© 2024 by the author(s). Licensee EWA Publishing, Oxford, UK. This article is an open access article distributed under the terms and
conditions of the Creative Commons Attribution (CC BY) license. Authors who
publish this series agree to the following terms:
1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons
Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this
series.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published
version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial
publication in this series.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and
during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See
Open access policy for details).