An Analysis In QFII Holdings And The Performance Of Listed Companies And The Impact Factors Of Their Investment

QFII (Qualified Foreign Institutional Investor) is a transitional institutionally arrangement which is based on the condition that the country’s capital market is not totally opened. In November5,2002, China Securities Regulatory Commition (CSRC) and the People’s Bank of China issued jointly<Qualified Foreign Institutional Investor Securities Investment Management Interim Measures>, which is formally implemented from December1,2002(It has been abolished now). This legal document means that the QFII System has been established formally in our country. The Swiss Bank and Nomura Securities Co, Ltd are the first allowed QFIIs in May,2003. By August2012,181foreign institutional investors are approved to be the QFIIs in our cournty.There are two main purposes that our country introduces the QFII System. One is that to open the domestic capital market and to intergrate with the international capital markets. The other reason is that we could use the QFII’s competitive advances, such as mature investment philosophy, professional investment team and advanced investment strategy, to prowide guidance on the domestic investment market and to give some help on the correction of domestic excessive speculation and corporate governance. But with the constant changes and improvements of China’s QFII policies and the QFII expansion in the number and the scale of investment, we have to reconsider the role of the QFII in the development of China’s securities market. To go further, we must find out the correlation between QFII holdings and performance of the listed corporates and what capacity indicators could be the investment criteras of QFII when they choose the investment targets. There are only a few literature results on the study of the relationship between QFII holdings and performance of the listed corporates and the conclusions are still controversial. Further more, the research methods that many scholars used before also need to be improved. This article is based on the background above. There are six parts in this article. The first part is the introduction. It introduces the background, significance of this article and logical framework. The second part is the literature comments, which reviews from domestic to foreign scholars’relative research results and the inspirations from them. The third part means theoretical basis and analysis which is to define some relative nouns and review the relative theories to provide guidance for the research ideas and hyptheses of this article. The fourth part is about the study design to describe and summarize the design the empirial research. The fifth part is about the empirical testing and results analysis. In this part, we will describe the empirical test process mostly and to judge the results. The last part is the conclusions and recommendations. Some relative recommendations will be proposed based on the empirial results.There are three innovations in this paper. The first one is the research perspective. Most domestic research is forcused on the investment characteristics of QFII and the affect on the fluctuations in stock maket and so on. There are only a few literatures about the relationship between QFII holdings and performance of the listed corporates, and further more, the follow-up study is almost blank. This article demonstrates the correlation between them both in theoretically and empirically, and find out what capacity indicators could be the investment criteras of QFII when they choose the investment targets which files the blank of the follow-up study. The second innovation is about the evaluation index system. The scholars used single financial indicator to measure the listed company’s performance which might be very accurate. This paper established a retional evaluation index system to guarantee the accurancy of the empirical results. The third one is that this paper riches the relative research findings. Because of the inconsistency of the conclusions, the relative results which are based on relatively scientific empirical research could provide some reference value.