Regional Digital Finance and Its Effect on IPO Performance: A Chinese Market Analysis

Abstract

This paper explores the intricate relationship between the rise of digital finance and initial public offering (IPO) outcomes within China’s diverse regional economies. As digital finance transforms traditional financial services through technological innovations such as online lending, mobile payments, and blockchain, its influence on capital markets becomes increasingly significant. This research investigates how varying levels of digital finance adoption across different regions in China impact IPO performance, including factors such as stock pricing, liquidity, and post-IPO valuation. By analyzing regional disparities in digital finance infrastructure and integration, the study provides insights into the role of financial technology in shaping market dynamics and offering strategic guidance for companies considering going public in digitally evolving economies. The findings aim to contribute to the broader understanding of how regional financial innovations can influence capital market efficiency and investor behavior in emerging markets like China.