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Cross-listing and bonding premium: Evidence from Chinese listed companies


This paper examines whether cross-listing enables firms to earn a higher valuation. We contrast a sample of 580 Chinese firms cross-listed on the B-share market of China and 159 Chinese firms cross-listed on the Hong Kong H-share market against a control sample of domestic firms listed only on the A-share market of China. It is found that firms cross-listed on B-share and H-share markets both enjoy bonding premiums. Moreover, the bonding premium is larger for H-share firms than for B-share firms. Results show that the amount of bonding premium is positively related to the level of investor protection, which provides supporting evidence to the bonding theory.


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Correspondence to Hongbo Shen.

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Translated from Caimao Jingji 财贸经济 (Finance & Trade Economics), 2008, (9): 40–45

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Shen, H., Liao, L. & Liao, G. Cross-listing and bonding premium: Evidence from Chinese listed companies. Front. Bus. Res. China 4, 171–184 (2010).

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  • cross-listing
  • bonding theory
  • bonding premium