Chinese banks' IPOs boost efficiency, resilience in face of global financial crisis.
The study looked at how Chinese banks improved their efficiency by becoming shareholding companies through foreign participation and stock listing. By analyzing data from 14 listed Chinese banks from 1999 to 2008, the researchers found that this restructuring increased the banks' efficiency and scale economies. The banks became about 5% more efficient after going public, which helped them better manage risks and compete in a tough economic environment.