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This study contributes to the limited literature on the link between corporate governance and cross-listing behavior in developing countries. Using recently available financial and accounting data from the Shanghai Stock Exchange (SSE), Shenzhen Stock Exchange (SZSE) and the Hong Kong (HKEX) exchange, contributes to the literature by documenting an unusual bi-directional flow of cross-listing between mainland China and Hong Kong. Further, estimates reveal a 2.7 cross-listing premium for listed “domestic” SSE and SZSE firms, presenting a departure from the common uni-directional models (Ferris, Kim & Noronha, 2009). This cross-listing premium can be interpreted as indicative that many investors believe there are better opportunities in the SSE and SZSE markets than the HKEX. This study provides new insights on the role of state ownership in reducing firm informational and agency problems, providing evidence that suggests state ownership may provide more information sharing (with other shareholders). Estimates also show that cross-listing has a positive impact on firm valuation as measured by Q -particularly for state-owned enterprises (SOE).