We examine the extent of stock market reactions to the announcement of cross-border M&A deals. Our findings show that the announcement of cross-border M&As results in a positive stock market reaction. The results also indicate that the level of political risk and SOE ownership are negatively associated with the short-term market performance of Chinese acquiring firms. Our study helps to provide new insights into the relationship between the short-term market performance and the institutional characteristics associated with cross-border M&As by Chinese firms.