QFII Shareholding, the Performance of Listed Companies and the Quality of Stock Market: An Empirical Test on the Data of China from 2009 to 2017

Tong Yuansong
2018 Journal of Finance and Accounting  
By selecting the shares on Shanghai Stock Exchange of China held by QFII from 2009 to 2017 as the research sample and by using Stata12, Excel software, this paper studies the effect on the quality of the stock market caused by QFII holdings, scale of listed companies, their performance, and etc. through descriptive statistics, regression, and dummy variable regression methods. Empirical studies have found that QFII investment behavior is more rational and the ability of stock selection is
more » ... selection is stronger. Most of the stocks they hold have excellent performance and large market values; QFII holdings enhanced liquidity of the stock and reduced the volatility of stock prices, which tends to stabilize the stock price; QFII stock ownership has the biggest impact on the market quality of large and medium-sized stocks, but has a weak impact on small-cap stocks. The listed company who has better performance and larger current market value can achieve better stock liquidity and stability. China should continue to expand the QFII team, encouraging it to participate in the corporate governance activities of listed companies and tap the potential small-cap growth stocks, and allows excellent QFII to issue funds or other financial products at home and abroad. Chinese listed companies should actively improve their performance, strengthen cooperation with QFII to optimize corporate governance and strengthen market value management.
doi:10.11648/j.jfa.20180604.11 fatcat:q6i264s7ijapbfmlfngfrhdayu