Advances in Economics, Management and Political Sciences

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Proceedings of the 7th International Conference on Economic Management and Green Development

Series Vol. 33 , 10 November 2023


Open Access | Article

The Impact of Pre Delisting Crisis on the Stock Price of Chinese Stocks --The Case of "Bilibili"

Yuting Chen * 1
1 Zhongkai College of Agricultural Engineering

* Author to whom correspondence should be addressed.

Advances in Economics, Management and Political Sciences, Vol. 33, 102-112
Published 10 November 2023. © 2023 The Author(s). Published by EWA Publishing
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Citation Yuting Chen. The Impact of Pre Delisting Crisis on the Stock Price of Chinese Stocks --The Case of "Bilibili". AEMPS (2023) Vol. 33: 102-112. DOI: 10.54254/2754-1169/33/20231630.

Abstract

Against the backdrop of the introduction of the US Foreign Company Accountability Act, the threat of trade tensions between the US and China to the fate of corporations has once again been exposed. The US increased regulatory scrutiny of Chinese stocks and then signing of an agreement between Chinese and US regulators regarding audit and regulatory cooperation. Although the risk of Chinese stocks being delisted has decreased in the short term, in the medium to long term, the risk of delisting and the pressure brought by trade frictions between China and the United States still exist for the company. This paper uses the event study method to analyze the degree of abnormality in the share price volatility of Bilibili, when the first pre-delisting list is announced and the company itself is on the list, reflecting the magnitude of the pre-delisting event's impact on Chinese stocks. The findings demonstrate that not only do the listed companies have abnormal fluctuations in stock prices, but the entire Chinese concept stock market has short-term negative impacts when the pre-delisting list is announced. Finally, based on the research results and previous literature, this article will provide relevant suggestions from the perspectives of the country, government, and enterprises.

Keywords

pre-delisting, China concept stocks, Bilibili

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Data Availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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Volume Title
Proceedings of the 7th International Conference on Economic Management and Green Development
ISBN (Print)
978-1-83558-087-5
ISBN (Online)
978-1-83558-088-2
Published Date
10 November 2023
Series
Advances in Economics, Management and Political Sciences
ISSN (Print)
2754-1169
ISSN (Online)
2754-1177
DOI
10.54254/2754-1169/33/20231630
Copyright
© 2023 The Author(s)
Open Access
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

Copyright © 2023 EWA Publishing. Unless Otherwise Stated