Policy Uncertainty and Innovation: Evidence from IPO Interventions in China

Cong, Lin William; Howell, Sabrina T.

doi:10.3386/w24657

Cited by 11 publications

(17 citation statements)

References 80 publications

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“…As described above, China's securities regulator, the CSRC, is authorised to impose suspensions on new IPOs of indeterminate length, and has done so nine times since 1994 and five times since 2005. The motivation for the suspensions appears to have been concern over market stability, in particular that liquidity might be reduced, market prices depressed, or demand from existing stocks depressed by new IPOs (Tian (2011), Shi et al (2018), Cong and Howell (2019)…”

Section: Ipo Suspensions In China: the Institutional Backdropmentioning

confidence: 99%

“…In fact, the length is quite variable: in the three most recent suspensions of 2008-09, 2012-14, and 2015 that are the focus of this study, the length of the suspensions were 214, 438 and 156 days, respectively. 4 Cong and Howell (2019) demonstrate that the suspensions were costly to firms that had been approved and were in the queue for listing, likely due to increased market uncertainty and lost strategic opportunities.…”

Section: Ipo Suspensions In China: the Institutional Backdropmentioning

confidence: 99%

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Competitive Effects of IPOS: Evidence from Chinese Listing Suspensions

Packer¹,

Spiegel²

2020

ERWP

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Theory suggests that initial public offerings (IPOs) can adversely impact listed firms, both directly by increasing intra-industry competition, and indirectly by completing related asset market spaces. However, the endogeneity of individual IPO activity hinders testing these channels. This paper examines listing suspensions in China in a panel specification that accounts for macroeconomic and financial conditions, isolating the firm-level IPO impact. We measure the competitive impact of listing suspensions through the value share of postponed firms in the IPO queue in their industry, and asset-space competition by firms' historical covariance with a synthetic portfolio of listed firms with the IPO queue industry mix at the time of suspension. Our results support the predicted IPO effects through both channels. We also document heterogeneity in IPO effects. Stronger firms-measured through a variety of proxies-benefit less from the suspension news. These results are robust to a battery of sensitivity tests.

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Section: Ipo Suspensions In China: the Institutional Backdropmentioning

confidence: 99%

Section: Ipo Suspensions In China: the Institutional Backdropmentioning

confidence: 99%

Competitive Effects of IPOS: Evidence from Chinese Listing Suspensions

Packer¹,

Spiegel²

2020

ERWP

View full text Add to dashboard Cite

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“…The recent literature has mainly focused on the impact of political risk or political uncertainty on the cost of equity, cost of debt or investment at the firm level (e.g. Pástor and Veronesi, 2012, 2013; Bradley et al , 2016; Julio and Yook, 2016; Cong and Howell, 2018; Lam et al , 2018). An et al (2016) and Luo et al (2017) examine the general economic impact of political and policy risk in China, while Gurgul and Lach (2013) find the negative impact of political instability on economic growth.…”

Section: Literature Review On Policy Reversalsmentioning

confidence: 99%

“…Li et al (2011) examine the conversion of non-tradable shares into common shares. Cong and Howell (2018) explore the impact of the suspension of IPO applications on those affected firms from 1995 to 2014. We name them as “Stock Market” related reversals.…”

Section: Chinese Financial Market Liberalization Policy Reversalsmentioning

confidence: 99%

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Unveil the economic impact of policy reversals: the China experience

Lam

Zhang

2019

CFRI

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Purpose The purpose of this paper is to reveal the economic impact of policy reversals related to market liberalization reforms in China. Design/methodology/approach To perform the analysis, the authors hand-collect 59 financial market liberalization policy reversals from 1999 to 2017. These reversals are related to the liberalization of the stock market, bond market, derivatives market, forex market, lending market, and real estate market etc. The authors employ a stylized equilibrium interest rate model from Li et al. (2013) to deduce the impact of policy reversals on economic growth and the associated volatility after the announcement of each policy reversal. Findings First, the authors discover that about half of reversals are related to some tradeoff between the economic growth and the volatility associated with growth. Second, the authors also find that about a quarter of the reversals are detrimental to both the growth and the stability. These reversals, if known to policymakers, should be entirely avoided or corrected. Third, using a simple diagnostic test, the authors can identify detrimental reversals at the intra-day frequency by computing the change of the term spread and the volatility before and after the reversals. Practical implications The findings are useful for identifying effective policymaking in developing countries where mature democratic and rigorous policymaking processes are often lacking and formulating economic policies is challenging. The findings suggest that policy reversals serve China well by improving the quality of the policy made without posing destructive consequences to the existing economic infrastructure. This empirical evidence is important for a better understanding of the benefits of policy reversals on economic growth. Social implications The empirical procedure provides a timely and objective evaluation of policy shifts, allowing for the general public to discern the rationale behind the policy decisions. Consequently, stakeholders’ trust and confidence in policymakers is enhanced so that the probability of the successful implementation of structural reforms may increase in these developing countries. Originality/value First, the results reveal some successful examples of Chinese policymaking in the path of liberalizing financial market. The authors find that the Chinese liberalization policy flip-flops have resulted in a more balanced growth on some occasions with reduced growth rate and volatility. Second, the proposed methodology provides an objective evaluation of policy shifts, allowing for the public to infer the general direction of the impact generated by policy shifts. Subsequently, stakeholders’ trust and confidence in policymakers can be enhanced and/or restored if the process of finding a successful path of structural reforms is unambiguous. Finally, the interest rate model also provides a timely method to evaluate the impact of policy shifts at an intra-day frequency, whereas most macroeconomic indicators are available at longer frequencies such as monthly or quarterly. The timeliness in understanding the economic consequences of policy reversals can be critical to prevent the destructive consequences of bad ones.

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Simple plant‐based production and purification of the assembled human ferritin heavy chain as a nanocarrier for tumor‐targeted drug delivery and bioimaging in cancer therapy

Knödler

Opdensteinen

Sankaranarayanan

et al. 2023

Biotech & Bioengineering

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Nanoparticles are used as carriers for the delivery of drugs and imaging agents.Proteins are safer than synthetic nanocarriers due to their greater biocompatibility and the absence of toxic degradation products. In this context, ferritin has the additional benefit of inherently targeting the membrane receptor transferrin 1, which is overexpressed by most cancer cells. Furthermore, this self-assembling multimeric protein can be loaded with more than 2000 iron atoms, as well as drugs, contrast agents, and other cargos. However, recombinant ferritin currently costs ~3.5 million € g −1 , presumably because the limited number of producers cannot meet demand, making it generally unaffordable as a nanocarrier. Because plants can produce proteins at very-large-scale, we developed a simple, proof-of-concept process for the production of the human ferritin heavy chain by transient expression in Nicotiana benthamiana. We optimized the protein yields by screening different compartments and 5′-untranslated regions in PCPs, and selected the bestperforming construct for production in differentiated plants. We then established a rapid and scalable purification protocol by combining pH and heat treatment before extraction, followed by an ultrafiltration/diafiltration size-based separation process. The optimized process achieved ferritin levels of ~40 mg kg −1 fresh biomass although depth filtration limited product recovery to ~7%. The purity of the recombinant product was >90% at costs ~3% of the current sales price. Our method therefore allows the production of affordable ferritin heavy chain as a carrier for

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Policy Uncertainty and Innovation: Evidence from IPO Interventions in China

Cited by 11 publications

References 80 publications

Competitive Effects of IPOS: Evidence from Chinese Listing Suspensions

Competitive Effects of IPOS: Evidence from Chinese Listing Suspensions

Unveil the economic impact of policy reversals: the China experience

Simple plant‐based production and purification of the assembled human ferritin heavy chain as a nanocarrier for tumor‐targeted drug delivery and bioimaging in cancer therapy

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