The Effect Of A+H Cross-listing On Enterprises’ Growth

With the development of globalization and the decreasing of barriers in capital market, cross-listing has become an important means to seek for long-term development for Chinese enterprises. For those enterprises with stong momentum, one particular capital market has been unable to meet the needs of business expansion. In order to further increase the liquidity and funding channels, many have chosen developed countries (regions) such as America、Braitan or Singapore to cross-list, of which Chinese Hongkong due to its geographical and cultural advantage has become the first choice for cross-listing of Chinese enterprises. Currently the research on cross-listing mainly focuses on the effect of cross-listing on corporate governance、 information disclosure、eranings management. Rather, few of research focuses on the effect of cross-lising on comprehensive growth, under this background, this article mainly research on the effect of A+H cross-listing on enterprises’ growth.After reviewing theoretical basis and literature, we put forward relevant assumptions through analysis of cross-listing growth mechanism.Then we build cross-listed enterprises’ growth model through mutation progression method, followed by analyzing the growth of cross-listed companies through longitudinal study and cross-sectional study. In longitudinal study, by selecting the growth rating from 2 years prior to listing, the listing year and three years after listing, we found that growth of cross-listed companies take S-shaped change: from the year prior to listing to listing year showed an upward growth trend, growth dropped significantly after listing, finally growth rises again after three years of listing. Comparing with "A-share returns to H-share" model, growth of "H-share returns to A-share" model declines less after listing; Comparing with "Manufacturing" growth of "Non-manufacturing" model declines less after listing. In cross-sectional study, we select pair companies, research on the growth difference between cross-listed company and its counterpart through the 4-year data after cross-listing, which suggests cross-listed companies perform worse in short term: "H shares return to A shares" and "A-share return H shares" cross-listed enterprises’ growth mode was significantly worse than pair companies, however, comparing with "H shares return to A shares", "A-share return H shares" cross-listed enterprises’ growth mode was even worse than pair companies. "Manufacturing" and "Non-manufacturing" cross-listed companies are worse than their counterparts, in which "Non-manufacturing" cross-listed companies are even worse. Chapter VI is conclusions and policy suggestions, according to the conclusions, we provide some suggestions for enterprises and government, also made a prospect of follow-up study for growth of A+H cross-listed companies.