Impact of Dual Listings on Valuation and Liquidity: Evidence from China's Stock Markets

China has a unique stock market structure characterized by investment barriers separating indigenous investors from foreign investors in the A- and B-share markets. This paper is a preliminary study of the value and liquidity effects of A- and B-share dual listing on the shares already circulating in one of these submarkets. The results not only support the applicability of key theoretical hypotheses about dual listing in such an institutional context but also reveal remarkable variations in dual listing effects in these two submarkets. These variations may be attributed to asymmetric information and the differing extent of insider trading activities across the two segmented markets.