China Accounting and Finance Review

, 16:6

First online:

Open Access This content is freely available online to anyone, anywhere at any time.

Structural Changes in the Chinese Stock Market: A Review of Empirical Research

  • Haitian LuAffiliated withSchool of Accounting and Finance, The Hong Kong Polytechnic University Email author 
  • , Jiajia FuAffiliated withSchool of Accounting and Finance, The Hong Kong Polytechnic University


China’s stock market has gone through major structural changes since its inception in the early 1990s. In this survey article, we review the empirical literature published in 15 leading accounting and finance journals from 1998 to 2013 that documents these important structural changes. In analysing this literature, we focus on the ‘distinctiveness’ of the Chinese stock market compared with developed stock markets (e.g. US) and the research opportunities generated by the China setting. Key themes include China’s share issue privatisation (SIP) reforms, the political connections in privately owned companies, the characteristics of Chinese listed companies and their governance, the regulatory environment reforms in China, and the evolving role played by auditors and other information intermediaries.


China Stock Market Structural Change Corporate Governance Financial Accounting Auditing Executive Compensation Financial Reporting