Reshaping the Chinese Stock Market to Accommodate Red-chips: Practice, Balance and Consequence
type: CreativeWork
description: In the Chinese stock market parlance, red-chips refer to Chinese companies that are incorporated overseas but have their main business operation in China, regardless of whether they are listed or not. Red-chips include Chinese state-owned enterprises, but this thesis focuses on those that are not state-owned. The reason for concentrating on privately-controlled red-chips is that Chinese authorities can decide the listing venue of state-owned red-chips, and thus, accommodating state-owned red-chips is not a policy priority of the recent Chinese stock market reforms. For terminological brevity, red-chips referred to in this thesis mean the privately-controlled sub-set unless otherwise specified. Red-chips usually have a big business scale and large market share with the ability to develop technologies and boost innovations, which are of significance to economic development. Reshaping the stock market to accommodate red-chips is thus a crucial goal behind China’s recent policy and regulatory changes. However, satisfying issuers’ preferences to promote stock market development has to go hand-in-hand with effective protection of investors, the suppliers of capital. Therefore, ‘how did China seek to reshape the stock market to accommodate privately-controlled red-chips while protecting investors?’ is a key underlying concern across the package of China’s recent stock market reforms. To answer this question, this thesis examines several policy and regulatory changes that aim at accommodating red-chips while not compromising investor protection, looking into their functioning and interconnection, exploring the market impact and seeking policy implications. It argues, mainly on the basis of doctrinal, comparative and empirical analyses, that Chinese authorities have adopted stringent restrictions on the issuer side to seek a trade-off between accommodating red-chips and safeguarding investors, which may have nevertheless discouraged or deterred certain red-chips from going p…
abstract: In the Chinese stock market parlance, red-chips refer to Chinese companies that are incorporated overseas but have their main business operation in China, regardless of whether they are listed or not. Red-chips include Chinese state-owned enterprises, but this thesis focuses on those that are not state-owned. The reason for concentrating on privately-controlled red-chips is that Chinese authorities can decide the listing venue of state-owned red-chips, and thus, accommodating state-owned red-chips is not a policy priority of the recent Chinese stock market reforms. For terminological brevity, red-chips referred to in this thesis mean the privately-controlled sub-set unless otherwise specified. Red-chips usually have a big business scale and large market share with the ability to develop technologies and boost innovations, which are of significance to economic development. Reshaping the stock market to accommodate red-chips is thus a crucial goal behind China’s recent policy and regulatory changes. However, satisfying issuers’ preferences to promote stock market development has to go hand-in-hand with effective protection of investors, the suppliers of capital. Therefore, ‘how did China seek to reshape the stock market to accommodate privately-controlled red-chips while protecting investors?’ is a key underlying concern across the package of China’s recent stock market reforms. To answer this question, this thesis examines several policy and regulatory changes that aim at accommodating red-chips while not compromising investor protection, looking into their functioning and interconnection, exploring the market impact and seeking policy implications. It argues, mainly on the basis of doctrinal, comparative and empirical analyses, that Chinese authorities have adopted stringent restrictions on the issuer side to seek a trade-off between accommodating red-chips and safeguarding investors, which may have nevertheless discouraged or deterred certain red-chips from going p…
author: Chen, Fa
language: eng
keywords: Chinese stock market, Investor protection, Market openness, Red-chips
license: https://www.rioxx.net/licenses/all-rights-reserved/
date published: 2022-06-25
date modified: 2026-07-22T22:24:08Z
provider: Cambridge University
publisher: Networked Digital Library of Theses and Dissertations
type: WebPage
source organization: The University of Cambridge

PropertyValue
property ID: DOI
value: 10.17863/CAM.95041