Assignment First


  中国新兴资本市场将是进行以下研究的理想制度环境。首先,中国股市正逐渐成为亚洲的一个重要市场。此外,中国股票市场的规模越来越大,越来越接近工业化国家的规模(Correia et al., 2015)。根据理论,中国在2010年已经成为世界上最大的投资者,中国股票市值首次达到10万亿美元。中国股市的市值比日本整个股市的市值还多5万亿美元。此外,它在12个月内以6.7万亿美元的速度增长。2007年以来,中国为世界经济增长作出了贡献。2014年,中国占世界GDP的比重为0.9万亿美元。另一方面,美国贡献了0.6万亿美元,英国贡献了0.3万亿美元。


  中国资本市场的另一个显著特征是在上市过程中受到高度干预(Correia et al., 2015)。从全球角度来看,在市场仍在增长的情况下,干预有助于股票发行。然而,政府质量差导致市场效率低(Liu, 2013)。因此,证监会对股票发行进行了监管。中国资本市场的制度特征与其他国家明显不同。因此,其他国家的经济政策在应用于中国市场之前应该进行调整。因此,IPO的极端抑价高达247%也就不足为奇了(Tian, 2011)。


  Chinese emerging capital market will be an ideal institutional environment in order to conduct the research in the following way. First, Chinese stock market is gradually becoming an important market in Asia. Moreover, the size of the Chinese stock market is growing larger and larger approaching the size of those industrialized countries (Correia et al., 2015). According to theory, China has become the world’s biggest investor in 2010, and the value of Chinese stocks reaches $10 trillion for the first time. The Chinese stocks’ market value is more than $5 trillion over the size of Japans entire stock market. Moreover, it increases at a speed of $6.7 trillion in 12 months. Since 2007, China has contributed to the global growth. In the year 2014, the contribution of China is $0.9 trillion in the world GDP. On the other hand, US contributed $0.6 trillion and UK contributed 0.3 trillion in the world GDP.

  China is the fastest economic region to achieve mature market in dollar terms over a 12-month period. Further, Data released by the China Securities Regulatory Commission (CSRC) depictsthose 220 IPOs raising 158.8 billion Yuan in 2015. It is exceeded in a high standard to the 78.66 billion Yuan in all of 2014. The development of China and its contribution in the world GDP have attracted many investors to invest into the China market.

  Another distinctive feature of the Chinese capital market is highly interfered during the procedure of appearing on the market (Correia et al., 2015). From a global perspective, the intervention helps the issue of stock when the market is still growing. However, a bad quality of government leads to a weak efficiency of the market (Liu, 2013). As a result, CSRC regulates stock issuing. Institutional characteristics of Chinese capital markets differ markedly from those in other countries. Therefore, the economic policy from other nations should be adjusted before applying to the Chinese market. There is no wonder that extreme IPO underpricing is up to 247% (Tian, 2011).