Research On The Impaction Of QFII And The Protection Of Medium And Small Investors

According to the data of the2012statistics yearbook, shares held by individual investors accounted for30%, occupying the entire transaction85%, by the end of2012in the A stock market. However, nearly80%of the investment is in a loss of status. The medium and small investors hardly recover their investment, and their capital is not guaranteed. Their interests are serious damaged. In order to solve this problem, the national institutions are determined to improve the investment structure, which the retail investment takes the domination of the stock market. China encourages the expansion of institutional investors’ team, improves the benefit of investment capital in the stock market, and protects the interests of investors.As a kind of special from the introduction of institutional investors in the domestic capital market, QFII has attracted the attention of the public, with its domestic investment ratio increasing, on the one hand, which can increase the proportion of institutional investors accounted for, on the other hand, which has mature investment ideas and rich experience whose entry can improve the domestic speculation and promote the healthy development of the securities markets. Then, what impact the introduction of QFII will bring exactly to the Chinese market and how to improve it, whether they can improve domestic corporate governance issues by the advantages of their own, and whether they protect the interests of investors or only pay attention to short-term interests are still on a question.Therefore, the analysis of institutional investors on investor protection starts from the introduction of QFII perspective. Firstly, through theoretical analysis of mechanism of QFII from the medium and small investors’ action, we put forward the hypothesis. With the listing Corporations in the A stock market from2009to2012as the samples;we test the effects of QFII shares on the interests of small investors. The analysis results show that QFII ownership will enhance the value of the company at a certain proportion, protecting the interests of small investors. This thesis provides a theoretical reference to the introduction and specification of QFII investment.