Center for Pacific Basin Studies

The Center for Pacific Basin Studies promotes cooperation among central banks in the Pacific Basin and provide insight into and analysis of economic policy issues affecting the region.

Learn more about the Center for Pacific Basin Studies

Pacific Basin Notes

Occasional series of the FRBSF Economic Letter

China’s IPO Activity and Equity Market Volatility

2016-18

Frank Packer and Mark Spiegel | June 6, 2016

China has recently considered reforming its regulation of initial public offerings in equity markets. Current policy allows more IPOs in rising markets but restricts new issues in falling markets, possibly to avoid pushing down values of existing stocks. However, recent research finds China’s IPO activity has no effect on stock price changes, perhaps because of the low volume relative to the overall market. As such, cyclical restrictions on IPOs do not appear to have stabilized Chinese markets, so policy reforms may improve market efficiency without increasing volatility.

More Pacific Basin Notes

Working Papers

China’s Financial Linkages with Asia and the Global Financial Crisis

FRBSF Working Paper 2013-12

Glick • Hutchison | May 2013

This paper presents empirical evidence on how asset market linkages between China and Asia shifted during and after the global financial crisis of 2008-2009. We find only weak cross-country linkages in longer-term interest rates, but much stronger linkages in equity markets. We also find that the strength of the correlation of equity price changes between China and other Asian countries increased markedly and has remained high in recent years.

More Working Papers

Conferences

2017 Asia Economic Policy Conference

November 16 - November 17, 2017
Center for Pacific Basin Studies, Federal Reserve Bank of San Francisco | San Francisco, California

Conference organizers invite research paper submissions by March 15 along the theme of “Monetary Policy Challenges in a Changing Global Environment.”

See other events