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

doi:doi:10.11648/j.jfa.20180604.11

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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

Published in Journal of Finance and Accounting (Volume 6, Issue 4)

Received: 29 August 2018 Accepted: 25 September 2018 Published: 26 October 2018

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Abstract

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 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.

Published in	Journal of Finance and Accounting (Volume 6, Issue 4)
DOI	10.11648/j.jfa.20180604.11
Page(s)	96-104
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2018. Published by Science Publishing Group

Keywords

Stock Liquidity, Share Price Volatility, Market Capitalization, The Performance of Listed Companies

References

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[2]	SHANG Jingbo. 2010. A Study on the Stabilizing Effect of QFII on Chinese Stock Market [J]. Science Technology and Engineering, Vol. (31), pp. 7862-7865.
[3]	RAO Yulei, Xu Junlin, Mei Lixing, Liu Mi. 2013. The Impact of QFII Shareholding on Stock Price Synchronicity [J]. Journal of Management Engineering, Vol. 27 (2), pp. 202-208.
[4]	PENG Ying. 2014. Empirical Analysis of QFII Shareholding Ratio on Stock Price Deviation [J]. China Commerce and Trade, Vol. 23 (5), pp. 139-140.
[5]	HUANG Bin. 2011. Research on QFII's Shareholding Characteristics in China's A-share Market [J]. Statistics and Decision-making. Vol. 27 (24), pp. 139-142.
[6]	WANG Xiong, FANG Wenqian, Zhen Biao. 2013. QFII Holdings and Performance:A Correlation Study of Listed Companies Based on 2009-2011 Data [J] Journal of Shenzhen University (humanities and social sciences edition), Vol. 30 (3), pp. 87-91.
[7]	MA Chaoqun, Chen Rui. 2017. Impact of QFII Shareholding on the Performance of Listed Companies -- An Empirical Study Based on China's A-share Market [J]. Finance and Economics, vol. 37 (06), pp. 11-19.
[8]	Cho-Min Lin, Bor-Yi Huang, Wan-Hsiu Cheng and Pei-Shan Wu. 2007. The Relationships among Three Major Institutional Investors, General Individual Investors and the Stock Market [J]. Journal of Statistics and Management Systems, Vol. 10 (1), pp. 87-102.
[9]	Yang-Cheng Lu, Hao Fang and Chien-Chung Nieh. 2012. The Price Impact of Foreign Institutional Herding on Large-size Stocks in the Taiwan Stock Market [J]. Review of Quantitative Finance and Accounting, Vol. 39 (2), pp. 189-208.
[10]	Miao Luo, Tao Chen and Isabel K. Yan. 2014. Price Informativeness and Institutional Ownership: Evidence from Japan [J]. Review of Quantitative Finance and Accounting, Vol. 42 (4), pp. 627-651.
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[13]	ZHAO Xu, Lin Shu, Peng Yu. 2017. Is QFII a Stabilizer for the A-share Market? [J]. Financial Theory and Practice, Vol. 37 (06), pp. 12-16.
[14]	SHI Donghui, Zeng Gang, Pan Miaoli. 2014. Reason Analysis of the Performance Difference between Chinese and American stock markets [R]. Shanghai Stock Exchange Research Report. pp. 28.
[15]	WANG Di-hua, Wen Fang. 2014. Enterprise Life Cycle, EVA Performance Evaluation and Non-Efficiency Investment [J]. Journal of Hunan Institute of Finance and Economics, Vol. 30. (10), pp. 53-62.

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APA Style

Tong Yuansong. (2018). 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. Journal of Finance and Accounting, 6(4), 96-104. https://doi.org/10.11648/j.jfa.20180604.11

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ACS Style

Tong Yuansong. 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. J. Finance Account. 2018, 6(4), 96-104. doi: 10.11648/j.jfa.20180604.11

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AMA Style

Tong Yuansong. 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. J Finance Account. 2018;6(4):96-104. doi: 10.11648/j.jfa.20180604.11

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@article{10.11648/j.jfa.20180604.11,
  author = {Tong Yuansong},
  title = {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},
  journal = {Journal of Finance and Accounting},
  volume = {6},
  number = {4},
  pages = {96-104},
  doi = {10.11648/j.jfa.20180604.11},
  url = {https://doi.org/10.11648/j.jfa.20180604.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20180604.11},
  abstract = {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 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.},
 year = {2018}
}

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TY  - JOUR
T1  - 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
AU  - Tong Yuansong
Y1  - 2018/10/26
PY  - 2018
N1  - https://doi.org/10.11648/j.jfa.20180604.11
DO  - 10.11648/j.jfa.20180604.11
T2  - Journal of Finance and Accounting
JF  - Journal of Finance and Accounting
JO  - Journal of Finance and Accounting
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EP  - 104
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UR  - https://doi.org/10.11648/j.jfa.20180604.11
AB  - 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 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.
VL  - 6
IS  - 4
ER  -

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Author Information

Tong Yuansong

Department of Economic Management, Wuxi Open University, Wuxi, China

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Plain Text BibTeX RIS

APA Style

Tong Yuansong. (2018). 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. Journal of Finance and Accounting, 6(4), 96-104. https://doi.org/10.11648/j.jfa.20180604.11

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ACS Style

Tong Yuansong. 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. J. Finance Account. 2018, 6(4), 96-104. doi: 10.11648/j.jfa.20180604.11

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AMA Style

Tong Yuansong. 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. J Finance Account. 2018;6(4):96-104. doi: 10.11648/j.jfa.20180604.11

Copy | Download

@article{10.11648/j.jfa.20180604.11,
  author = {Tong Yuansong},
  title = {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},
  journal = {Journal of Finance and Accounting},
  volume = {6},
  number = {4},
  pages = {96-104},
  doi = {10.11648/j.jfa.20180604.11},
  url = {https://doi.org/10.11648/j.jfa.20180604.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20180604.11},
  abstract = {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 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.},
 year = {2018}
}

Copy | Download

TY  - JOUR
T1  - 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
AU  - Tong Yuansong
Y1  - 2018/10/26
PY  - 2018
N1  - https://doi.org/10.11648/j.jfa.20180604.11
DO  - 10.11648/j.jfa.20180604.11
T2  - Journal of Finance and Accounting
JF  - Journal of Finance and Accounting
JO  - Journal of Finance and Accounting
SP  - 96
EP  - 104
PB  - Science Publishing Group
SN  - 2330-7323
UR  - https://doi.org/10.11648/j.jfa.20180604.11
AB  - 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 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.
VL  - 6
IS  - 4
ER  -

Copy | Download