The Research On The Impact Of Ban-lifting Of China's Non-tradable Shares To Share Price

The basic pattern of stock market has changed a lot in China from the share-separating reform. According to the regulations of the Share-separating Reform Management of Listed Companies, there will be more and more non-tradable shares entering the stock market since they were allowed to re-circulate in 2006. With the stock market crash in 2008, the investors have paid more and more attention to the ban-lifting of non-tradable shares, which highly increase the market supply. This brings about not only expansion expectation and panic for investors but instability for stock market. So it is good for the market's stability and its long-term development to study the impact of the non-tradable shares re-circulation on share price.We can draw a solution from analyzing the time distribution, types and the corresponding market performance that the non-tradable shares re-circulation can change the supply and demand and the stock market valuation system. Besides, it restrains the macroeconomic growth and polarizes the company share price. Then this thesis studies the relation between the total samples' share prices changes and the changes of the feature of selected companies and the share prices by selecting 55 listed companies as samples and 30 days before and after the ban lifting day with a combination method of case studies and multiple linear regressions.Finally, we get three solutions below: Firstly, the ban-lifting of the non-tradable shares causes the fall of the share price within the empirical days; Secondly, the share price falls more after the ban-lifting day than before that; Thirdly, listed companies have a significant influence upon the share price: the return on equity and price to book ratio positively correlated with the stockownership concentration share price, and the ROE affects the share price most.