Translated title of the contribution: ST System and the Administrative Governance of China’s Stock Market

杜巨澜, 黄曼丽

Research output: Journal PublicationsJournal Article (refereed)peer-review



With the jump-starting development of its stock market, China faces a very weak legal foundation for the protection of its investors and the regulation of its financial market. So the administrative governance conducted by governments plays a central role in promoting the development of the stock market.ST system, as a complement to the quota system, is introduced to deal with the problems of post-IPO moral hazard by imposing the threat of de-listing. Given the reputation and incentive effects of the quota system, the local governments want to maintain a good performance of their listed companies so that they will help organize a rescue or a restructuring of the ailing listed companies. In this article, we examined 165 public companies that were "specially treated" from 1998 to 2003.Our results show that government subsidies as well as various restructuring activities have helped ST firms to improve their corporate performance. This demonstrates the effectiveness of ST system as an administrative governance mechanism in maintaining the vigor of China’s stock market.
Translated title of the contributionST System and the Administrative Governance of China’s Stock Market
Original languageChinese (Simplified)
Pages (from-to)142-151
Number of pages10
Issue number1
Publication statusPublished - Jan 2013


  • 中国资本市场
  • ST公司
  • 行政性治理
  • China’s stock market
  • ST system
  • administrative governance

Cite this