School of Business and Management Department of Finance 208 Hong Kong IPO Market Supervisor: ZHANG Chu / FINA Student: YANG Long Chun / QFIN Course: UROP 1100, Spring The motivation for this study stems from the critical need to address liquidity risks associated with concentrated ownership structures in family-dominated firms, particularly in the context of initial public offerings (IPOs) in emerging markets. Herbs Generation Group Holdings Limited, with its founding family retaining 75% of shares post-IPO, exemplifies a common challenge faced by such firms: limited free float, which can lead to low trading volumes and market instability. This issue is particularly pronounced in emerging markets like Hong Kong, where investor confidence hinges on share tradability and price stability. Drawing on the seminal work highlights the adverse impact of ownership concentration on stock liquidity in Thailand, this analysis seeks to explore how Herbs Generation mitigates these risks to ensure a successful post-IPO market presence. By examining the interplay of ownership concentration, corporate governance, and liquidity, this study aims to provide actionable insights for family-led firms navigating the complexities of public markets. The study by Prommin et al. (2016) titled “Ownership Concentration, Corporate Governance, and Stock Liquidity: Evidence from Thailand”, published in Emerging Markets Review, demonstrates how concentrated ownership in Thai firms reduces stock liquidity using metrics like the Amihud illiquidity ratio. This work indirectly inspires my research on Herbs Generation Group Holdings Limited, a Hong Kong firm with 75% family ownership post-IPO. Their findings on liquidity risks and governance inform my analysis of how Herbs Generation can enhance tradability and investor confidence. By applying their insights to Hong Kong’s IPO market, my study aims to propose governance strategies to mitigate liquidity challenges for family-led firms. Hong Kong IPO Market Supervisor: ZHANG Chu / FINA Student: ZHANG Ruoyan / QFIN Course: UROP 1100, Spring With the development of China’s e-commerce market, the express delivery services have been growing rapidly, from its appearance to its maturity in the past 20 years. While the express delivery services is in heatedly competitive market in China Mainland, SF Holding becomes the first express delivery company in China to achieve an “A+H” dual listing. Majority of its competitors got listed in Mainland exchanges or Hong Kong exchange (JD Logistics (02618.HK), J&T Express (01519.HK), YTO Express (600233.SH)), but few of them got double listed. It is worth mentioning because although they claimed that they are the top player in the express market, SF holdings didn’t take the majority of the market portion. Comparing with its competitors, SF was only taking about 7% of the market where ZTO, YTO, STO, and Yunda collectively held over 66% market share in Q1 2024. The whole market holds a “winner-takes-all” structure. The main fact arose: why SF Holding, not being the monopoly power in the whole market, is the first stock to reach dual listing? There must be something special behind the company so that it chooses to go IPO for the second time.
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