Study On Performance Of QFII Holdings Of Listed Companies Of Manufacturing

In recent years,QFII is becoming a more and more important force in China’s securities market because of its rapid development.And it plays a positive role in promoting the development of China’s listed companies and the securities market.Until2012,QFII has exsisted ten years in China.With the guidance of the government policies it becomes so stronger that can influence the listed company and securities market deeply.Therefore, after affirming the positive role of QFII in our securities market,scholars pay more and more attention on the thesis how the QFII impact on the performance of listed companies.According to these research questions, the paper firstly reviewed the existing theoretical basis of institutional investors and QFII. Then, it used the normative analysis to discuss why QFII affect the company’s performance and proposed the framework of corporate performance to be affected by QFII. It means QFII holdings-Corporate Governance-Corporate Performance. Then, paper proposed research hypotheses and built a theoretical model for the manufacturing company which went to public before December31,2003in based of the panel data which is from2004to2011.And then it analyzed the panel data model which was tested by F-test and Hausman-test to make empirical test on the impact on the performance of listed companies in China’s manufacturing industry of QFII holdings from shareholding ratio of QFII,the square of stake and Shareholding balance degree.Above this,it discussed the role of QFII which is value discoverer or value creators in listed companies.At last the empirical results show that, QFII not only has valuable discovery function, and also plays the role of value creation.It plays a positive role in promoting the performance of listed companies in China’s manufacturing industry.Finally, based on normative analysis and empirical research, this paper presented some policy recommendations.For example,the government should loosen constraints on the QFII system,develop the QFII investors of long-term value, guide QFII to participate in company governance actively and improve the transparency of policies to make the confidence of QFII investors more stable.