A Study On Influence Of The Performance Of Chinese Listed Bank On Bank Share Price

Banking, one of the three pillars of the financial market, plays an important role in the development of China’s economy, banking stocks, as heavy weight stocks; also have a key role in the capital market. Banking operations, which belong to the areas of real economy, the volatility of banking stock price, which is within the scope of the virtual economy. The paper make a research in the mutual influence, which include the performance of listed banks and the banking stock price volatility, finding ways to promote each other’s future development about banking and capital market, is contribute to the healthy development of the capital market. Simultaneously, it would also enhance the international competitiveness of listed banks.The paper, which is based on previous studies, according to the characteristics of the banking sector, divided listed banks into three categories, make an classification research on the influence of the listed banks’performance on the banking stock price volatility, At first, from a visual point of view, we analyze the operating performance about different types of banks. Then, according to the banking market performance of three categories, we adopt panel data models to do empirical study on the influence of the listed banks’performance on the banking stock price volatility. On this basis, we propose some policy which is good to the listed banks and stock markets. Through empirical analysis, we get the following conclusions:(1) The analysis of banking operation performance found that:in the joint-equity commercial banks, the ROE((Rate of Return on Common Stockholders’Equity) of Industrial Bank, SPD Bank and China Merchants Bank is a little high, and the city commercial banks is generally low, the phenomenon have a great relationship on the Loan-to-deposit ratio of banks. Typically, the lower cost-income ratio, the stronger profitability of banks, however, under different circumstances we should treated it differently. Different types of listed banks showed a downward trend on Non-Perform-ing Loan, indicating that China’s listed banks’ asset quality is gradually improving. From the perspective of net profit growth, state-owned banks’ average net profit growth rate is minimum, city commercial bank is second, and the joint-equity commercial bank is Maximum. (2) By the ways of studying the price changes of the banking sector, we found that three types of listed banks have analogous volatility trends. From the point of average share price in the six years, state-owned listed banks’prices are lower than the city commercial banks’. From the statistical characteristics of stock price volatility, in addition to Minsheng Bank, the other listed joint-stock banks and city commercial banks on the stock price fell days more than rise days, and the higher price of the average stock of banks, the fluctuations is more violent. In the three city commercial listed banks, they are very similar. Compared with the state-owned banks, the volatility is greater.(3) We adopt Panel Data model to do empirical studies, we can get the following conclusions:ROE hasn’t impact on the price, the indicator of Cost to income ratio have positive impact on the stock price, because the high profits of the banks are from the low cost of inputs, investor lack of confidence in the cost to income ratio targets. In the state-owned banks and city commercial banks, Loan-to-deposit ratio of banks has positive impact on the stock price, non-performing loan ratio of state-owned banks hasn’t impact on the price, has negative impact on the price of joint-stock banks and city commercial banks. Net profit growth of listed banks has positive impact on the state-owned banks and joint-stock banks, the higher the listed banks’ net profit growth rate, the better the banks’ long-term prospects, when investors increase the purchase of stock quantity, the price of listed banks would risen.