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Fei, Yue
, Hege, Ulrich
ORCID: https://orcid.org/0000-0003-4625-5212 and Jia, Xiao
(2026)
IPO Reform and Venture Capital: Evidence from China.
TSE Working Paper, n. 26-1732, Toulouse
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Abstract
We study how IPO reforms transmit to venture capital (VC) markets using the introduction of China’s entrepreneurial boards, ChiNext and the registration-based STAR. We document that both boards attract younger, higher-growth firms with weaker fundamentals in levels, but postIPO growth persists for ChiNext firms while decelerating sharply for STAR firms. VC backing plays different roles across regimes: on ChiNext it aligns with valuation premia and long-run outperformance, whereas on STAR it mainly predicts higher first-day returns. To identify causal effects on VC allocation, we construct novel text-based regulatory exposure measures from listing documents using keyword matching and Sentence-BERT semantic similarity, and show that VC financing reallocates toward firms more aligned with "supported" activities.
| Item Type: | Monograph (Working Paper) |
|---|---|
| Language: | English |
| Date: | April 2026 |
| Place of Publication: | Toulouse |
| Uncontrolled Keywords: | IPO Reforms, IPO Listing Requirements, Venture Capital, Business Description, BERT, China |
| JEL Classification: | G24 - Investment Banking; Venture Capital; Brokerage; Ratings and Ratings Agencies G28 - Government Policy and Regulation |
| Subjects: | B- ECONOMIE ET FINANCE |
| Divisions: | TSE-R (Toulouse) |
| Institution: | Université Toulouse Capitole |
| Site: | UT1 |
| Date Deposited: | 09 Apr 2026 06:39 |
| Last Modified: | 09 Apr 2026 06:40 |
| OAI Identifier: | oai:tse-fr.eu:131666 |
| URI: | https://publications.ut-capitole.fr/id/eprint/53160 |
