The Economic Evaluation Of The Overseas Listing Of China Petrochemical

Along with mass of gigantic state-owned enterprises go abroad and comeinto the stock markets in recent years, it has become an avoidless focusthat damnification of the state-owned assets introduced by abroad IPO anddomestic capital being deprived of equal right to enjoy the outstandingachievement of economic development. Therefore, it was necessary thatpresent economic effect of giant SOE's abroad IPO impersonally througheconomic evaluation on Sinopec's abroad initial public offering.Basing on viewpoint of quantitative analysis, this study evaluateseconomic effect of Sinopec's abroad IPO, and is expected to offer atheoretic foundation on judging the necessity and reasonableness of massof SOEs' abroad IPO through economic evaluation on Sinopec's abroad IPO.This text colligates fundamental analysis of securities investment,portfolio theorem and economic price-determination theory of productivefactors. Based on analyzing efficiency of stock markets, CAPM andmultifactor model are exerted to evaluate Sinopec's historical andexpected rate of return. Simultaneously, model of monopoly-as-seller andmodel of share's intrinsic value determination with finitary holdingperiod are integrated into securities investment analysis. With threeviewpoints of stock market, substantial economy, and dummy equilibrium,the correlated yield models have been established respectively. Economiceffect of Sinopec's abroad IPO is evaluated through contrastive analysisbetween its historical and expected rate of return.The conclusion from this study is that, as a gigantic state-ownedmonopoly which is provided with outstanding achievement, Sinopec'sintrinsic value, earning power and potential worth have beenunderestimated in the abroad stock markets whether based on price on itsIPO or share's historical yield, even its future expected yield.Therefore, from viewpoint of economic evaluation, damnification of thestate-owned assets exists from the abroad IPO of Sinopec. However, at thesame time, mass of domestic capital has never got an equal opportunityto enjoy the outstanding achievement of development from Chinesestate-owned economy.