IPO trend in China and factors that affect IPO decisions

Abstract

This thesis used quantitative method to try to identify the IPO trend in China and figure out the impacts of domestic regulatory and international political factors on IPO decisions in China. The results of the correlation analysis and difference in means tests show that the hypothesis – the IPO Suspension Policy, Hong Kong IPO reform and China-United States trade war did affect the IPO decisions in China – were supported by empirical evidence. On the other hand, I did not find enough evidence that the Chinese Mainland IPO reform and the Brexit had impacts on IPO decisions in China. Moreover, even same events had difference impacts on Chinese Mainland companies and Hong Kong companies. Overall, Hong Kong IPO market is not as active as the Chinese Mainland IPO market in responding to external changes. These finding might provide a way for Chinese companies to gauge opportunities and a direction for analysts to forecast IPO market in China.