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This study aims to inform prospective listing firms, investors and regulators of the unique drivers of Chinese initial public offering (IPO) pricing on the Hong Kong Exchange.

Using a hand-collected IPO dataset, we investigate whether information uncertainty or investor exuberance drives underpricing and Chinese IPOs’ performance from 2002 to 2015, including 114 state-owned enterprises (SOEs).

Contrasting with the “listing bubble” in the China domestic stock market, generated by the overoptimism of retail investors, we highlight a “placing bubble” among Chinese firms listed in Hong Kong. This is driven by institutional investors’ buoyant demand for Chinese IPO shares, particularly those of SOEs. Chinese listing firms employ discreet earnings management strategies with their working capital accounts to smooth pre-IPO earnings, which becomes apparent to the market only in the long term.

This study is the first to examine the pricing of sought-after Chinese IPOs among international investors, who face various restrictions when investing in the Chinese domestic stock market. Additionally, it is the first study to measure earnings management using hand-collected pre-IPO data in IPO underpricing studies.

Through the subject of business network dynamics, this study aims to examine how business network relationships impact company entry market and development within fast growing economies as China. The paper looks at business network relationships in a fast-growing economy and provides an understanding of the relational perspectives in internationalisation of three luxury fashion companies and their entry models affected by the China context-related variables.

The methodology is following a qualitative approach, based on multiple case-studies research, proposing three cases of companies entering the Chinese market in the luxury and fashion industry.

The research analyses the local business network paths and how they affect the entry strategy through the socio-cultural and political players. The paper adds knowledge to studies in market entry and business networks, in the fast-growing economies area, with its new norms and values.

This study tries to analyse how business networks and related relationships “with Chinese characteristics” affect the market entry strategy in the internationalisation path from the perspective of the luxury fashion industry sector. In so doing it tries to provide an original further development of business network models within the new Chinese context.

This paper investigates the relationship between institutional ownership and idiosyncratic volatility in Chinese and the USA stock markets and explores the potential explanations.

In this paper, the authors use the panel data regressions and the dynamic tests of two-way Granger causality in the panel VAR model to examine the relationship between institutional ownership and idiosyncratic volatility in Chinese and the USA stock markets.

The authors find that the institutional ownership in the Chinese (the USA) stock market is significantly and positively (negatively) related to idiosyncratic volatility through various tests. This paper indicates that institutional investors in the USA are more prudent and risk-averse, while the Chinese institutional investors are not because of high risk-bearing capacity.

This paper deepens the authors’ understanding on the relationship between institutional ownership and idiosyncratic volatility and in the USA and the Chinese stock markets. This paper explains the opposite relationships between institutional ownership and idiosyncratic volatility in the stock markets in China and USA.

Teaching wine tasting online is challenging, even given the curated digital tools of the Wine and Spirit Education Trust, a highly renowned online wine certification system is used. This paper aims to initially explore wine experts’ opinions about online wine education and subsequently examine the feasibility of customizing wine appreciation lexicons for Chinese learners.

A two-study multimethod approach was adopted. Study 1, a two-stage Delphi study, was conducted with 17 wine experts representing a number of countries, using a mix of closed/open-ended questions in an online survey. Data was collected in a market study in Study 2, conducted at agricultural markets in Thailand (pilot test) and China. Dialogues with market sellers were undertaken, evoking mental imagery of wine descriptors to explore the relevance of traditional versus local aromas and flavors in describing wine.

Findings concentrate on three main areas: general advantages/disadvantages of online wine education, reactions toward asynchronous/synchronous methods of wine tasting and, finally, the feasibility of customizing a wine appreciation lexicon for Chinese learners.

The study presents novel insights into the role of online wine education in China.

This study aims to explain the market-oriented transformation dilemma of Chinese urban investment and development companies (UIDCs; also known as local government investment and financing companies) and objectively evaluate their transformation efficiency from both static and dynamic perspectives. The results of the research provide methodological bases for improving the transformation efficiency of UIDCs, thus pointing out the direction for the rational planning of their transformation path.

This study takes Chinese UIDCs in market transformation during 2015–2019 as the research object and uses principal component analysis to screen the index system for measuring the efficiency of market transformation. It then uses a three-stage data envelopment analysis model and the Malmquist productivity index to evaluate the market transformation efficiency of these companies during 2015–2019 and comprehensively analyzes the influence of external environmental factors on the market transformation of Chinese UIDCs.

Research results show that the transformation efficiency of Chinese UIDCs is low and slow overall and that large spatial and temporal differences exist. The transformation efficiency of UIDCs located in eastern China is higher than that of UIDCs in central and western China. The higher the external environmental factors of regional GDP, local debt service pressure and credit rating, the more likely they are to cause input redundancy in the transformation process of Chinese UIDCs, which is not conducive to their market-oriented transformation. In addition, the higher the urbanization rate, the more effective it is to improve the efficiency of market-oriented transformation of UIDCs. If the influence of environmental factors is stripped away, both the overall efficiency value and pure technical efficiency value of market-oriented transformation of Chinese UIDCs will increase while the scale efficiency value becomes smaller.

This research measures the transformation efficiency of Chinese UIDCs and comprehensively analyzes the influence of external environmental factors on their market-oriented transformation. The goal is to enrich the study of the market-oriented transformation efficiency evaluation index system of Chinese UIDCs at the theoretical level and provide important reference values for improving the efficiency of market-oriented transformation of Chinese UIDCs at the practical level.

The purpose of this paper is to explore mechanisms of the overseas marketing assets needed for marketing dynamic capability in Chinese multinational enterprises (MNEs) settings. Marketing assets of foreign subsidiaries contribute to the dynamic capability of MNEs, which are crucial for their sustained competitiveness. This kind of mechanism attracts much attention in academia and industry. However, there are few studies on how dynamic capabilities are developed in MNEs considering the organizational structure of geographically dispersed assets in multiple locations. This paper aims to examine the effect of knowledge-based and relational-based marketing assets on dynamic marketing capabilities and the mediating effect of customer orientation on Chinese MNEs.

Integrating the dynamic capability approach and the international marketing literature, this study examines the impact of two types of marketing assets of foreign subsidiaries, focusing on knowledge-based and relationship-based marketing assets, on the dynamic marketing capabilities of Chinese MNEs. A large-scale empirical study of Chinese MNEs operating in overseas markets was performed, and the questionnaires were distributed and collected.

The results suggest a positive impact of knowledge-based and relationship-based marketing assets on marketing dynamic capability. We find that customer orientation has a positive mediating effect on the relationship between marketing assets and marketing dynamic capability. We also find that the competitive strength of the overseas market negatively moderates this relationship.

This study aims to contribute to the existing literature with a more fine-grained understanding of marketing assets and marketing dynamic capability, then provides theoretical guidance and management suggestions for the formulation and implementation of internationalization strategies of Chinese MNEs.

The findings outline several important implications for MNEs seeking into expand to overseas markets.

This paper contributes a novel, combined perspective on marketing assets and marketing dynamic capability.

We are the first to investigate the relationship between seasoned equity offerings (SEOs) and anchoring on historical high prices in China.

We use the ratio of the recent closing price to its historical high in the previous 12–60 months (anchoring-high-price ratio) to study its impact on the market timing of SEOs.

Empirical results show that the anchoring-high-price ratio significantly and positively affects the probability of additional stock issuances. Contrary to the USA market, the Chinese stock market reacts negatively to the SEOs at historical highs. Moreover, the anchoring-high-price ratio exacerbates the negative effect of announcements and leads to long-term underperformance. Finally, we investigate the impact of the anchoring-high-price ratio on a company’s capital structure, showing that the additional issuance anchoring on historical highs reduces the company’s leverage ratio in the long run. Overall, our findings support the anchoring theory and can help understand better the anchoring behavior of managers and the company’s decision on additional stock issuances.

We are the first to use the anchoring-high-price ratio to study the timing of SEOs. We find that the anchoring-high-price ratio positively affects the probability of SEOs. Unlike the USA, the Chinese stock market reacts negatively to SEOs at high prices. SEOs anchoring on historical highs reduce a firm’s leverage ratio in the long run. Finally, our results support the anchoring theory.

In 2016, the Chinese central government decentralized the responsibilities of housing market regulation to the municipal level. This paper aims to assess whether the decentralized market regulation is effective.

This study first investigates the fundamental drivers of urban housing prices in China. Taking into consideration the factors driving housing prices, the authors further investigate the effectiveness of decentralized housing market regulation by a pre- and post-policy comparison test using a panel data set of 35 major cities for the years from 2014 to 2019.

The results reveal heterogenous policy effects on housing price growth among cities with a one-year lag in effectiveness. With the decentralized housing market regulation, cities with fast price growth are incentivized to implement tightening measures, while cities with relatively low housing prices and slow price growth are more likely to do nothing or deregulate the markets. The findings indicate that the shift from a centralized housing market regulation to a decentralized one is more appropriate and effective for the individual cities.

Few policy evaluation studies have been done to examine the effects of decentralized housing market regulation on the performance of urban housing markets in China. The authors devise a methodology to conduct a policy evaluation that is important to inform public policy and decisions. This study helps enhance the understanding of the fundamental factors in China’s urban housing markets and the effectiveness of municipal government interventions.

This study aims to systematically reveal the complex interaction between uncertainty and the international commodity market (CRB).

A composite uncertainty index and five categorical uncertainty indices, together with wavelet analysis and detrended cross-correlation analysis, were used. First, in the time-frequency domain, the coherency and lead-lag relationship between uncertainty and the commodity markets were investigated. Furthermore, the transmission direction of the cross-correlation over different lag periods and asymmetry in this cross-correlation under different trends were identified.

First, there is significant coherency between uncertainties and CRB mainly in the short and medium terms, with natural disaster and public health uncertainties tending to lead CRB. Second, uncertainty impacts CRB more markedly over shorter lag periods, whereas the impact of CRB on uncertainty gradually increases with longer lag periods. Third, the cross-correlation is asymmetric and multifractal under different trends. Finally, from the perspective of lag periods and trends, the interaction of uncertainty with the Chinese commodity market is significantly different from its interaction with CRB.

First, this study comprehensively constructs a composite uncertainty index based on five types of uncertainty. Second, this study provides a scientific perspective on examining the core and diverse interactions between uncertainty and CRB, as achieved by investigating the interactions of CRB with five categorical and composite uncertainties. Third, this study provides a new research framework to enable multiscale analysis of the complex interaction between uncertainty and the commodity markets.

This chapter starts by reviewing four broad regulatory approaches that exemplified state-of-the-art in major jurisdictions: market-driven approach (the United States), state-driven approach (China), rights-driven approach (the European Union) and innovation-driven approach (the United Kingdom, Singapore, Hong Kong SAR). This chapter then examines possible regulatory updates with regards to walled gardens and shadow banking, the first two of the challenges first identified in Chapter 3. The next two chapters will then examine possible regulatory updates to address the remaining challenges identified.