The Performance And Factors Research On B-Share Listed Companies Of China

Although Chinese economy as well as China's capital market have experienced rapid growth in the past few years. The A-share market becomes to be paid more attention. A lot of reform policies have been launched during these years, and cleared away obstacle of development. The A-share market is getting great development. But the B-share market gets into a distressed situation gradually. For more than 10 years, the overall B-share market is developing in sluggish trend, compared with the development of China's macro-economic. As one of the issues left over China's stock market by history, resolving the future problem of the B-share market is inevitable.Taking B-share listed companies into research objects, this article analyzes the performance of B-share listed companies during 2003-2007 by means of panel data regression model . At the same time, it's followed by the comparison between different sorts of companies. Based on it, it analyzes the macrocosmic and microcosmic factors, which would affect the company performance possibly. Combined with the distressed situation and the cause, we are going to make some contribution to the sustainable development of China's B-share market. The article consists of six chapters:The first chapter: Introduction. The part includes the research aim, the significance, the research actuality, the article frame, possible innovations and deficiencies. The innovation of the article is that, analyzing B-share market dilemma through the point of B-share listed companies, in order to deeply analyze the distressed situation.The second chapter: By the evaluation of the research about B-share market and listed companies, aiming to ram some related theories for this study.The third chapter: Basic circumstance of B-share listed companies.Firstly, on the B-share market course of development,the development of the B-share market experienced big ups and downs, and the system is closely related policies; Then, from the fund-raising function and resource allocation point of view, with the A-share and H-share markets comparison of the status of the B-share market. Finally,it introduces the situation of development, including background, industry and regional distribution, scales condition of the B-share listed companies. For the industry distribution, the traditional industry occupies the most. The regions also don't distribute equally. B-share companies haven't got potential ability. But they have plenty of scales in equity and asset, and need enough recognition.The fourth chapter: An empirical analysis on the performance and fluctuation of B-share listed company from 2003 to 2007 by classifying different sorts of B-share companies. The performance of pure B-share companies exceeds dual B-share companies. The Shenzhen market also performs better than the Shanghai market. The ST companies occupy part of them and don't possess the value of investment.The fifth part: By establish model of multiple linear regressions, this part analyzes the relationship between the B-share companies' performance and different factors, including macrocosmic and microcosmic factors. And the choices of target and model, statistic analysis have been explained in detail. B-share companies' performance is related with macro-economy. Significance relation between foreign exchange reserves and the performance only exist in the Shenzhen market, or the Shanghai stock market as a particular role of the market obviously; Exchange rate and Shanghai stock market performance was a negative correlation, the effect is greater than Shenzhen Shanghai.The B-share market index and the B-share stock market performance have significantly positive correlation; M2/GDP and the Shenzhen, the Shanghai stock market performance are not significantly related; The governance mechanisms of B-share listed companies are basically sound and effective. Tradable shares, the proportion of the largest shareholding ratio and the performance were a positive correlation. At the same time, the proportion of liabilities has negative effects on performance. The operator should appropriately reduce long-term debt ratio, and actively financing from the capital market.The sixth chapter: Sum up the theoretical and empirical analysis conclusion; it is for the future development, positioning channels and the corresponding policy recommendations of the B-share market and companies.