Tradable A-shares And H Shares Parity Influencing Factors In The Reform Process In Empirical Analysis

The reform of shareholder right splitting in nature tries to restructure China capital market institutionally. As a result, it has been the most important and complicated structural reform so far, having a signicant influence on the development and systematic construction of China capital market as a landmark. Most of the non-marketable share holders achieve the liquidity of stocks by paying some of their own shares to the marketable share holders. In shareholder right splitting times, price of A share is higher than H share; the parity of them began to decrease since the latter half of last year.The paper selects 30 companies as the object of study, explore parity between Oct 17th,2005 to Dec 31th,2006.The result based on empirical test of diurnal data by designing alignment regression model shows: reform of shareholder right splitting, information asymmetry , liquidity effect, demand elasticity difference, idea of investment , risk choice degree , corporate governance , financial situation , element of industry are the influence factors of parity.On the basis of fully research, I consider that it could be designed beforehand from the following four aspects:Firstly, improving the corporate governance of listed companies. It includes: strengthen function of the board of director, establish a truly manager market and a mechanism of internal control,etc.Secondly, the philosophy of market investment should transform from focusing on the capital gain to the match of return and risk.Thirdly, lead investor to use correct solution valuing of a company's asset solution.Finally, we should adjust from the following aspects: the issuing rules and the structure of investors, etc.