National Team Capital, Equity Concentration And Stock Market Revenue

China's stock market ushered in a wave of bull market from June 2014.The Shanghai index soared to 5178.19 points in mid-2015 from about 2000 points,rising about 158%.The Shenzhen index soared to 18211.76 points in mid-2015 from about 7000 in mid-2014,rising about 160%.The GEM index soared to 4037.96 points in mid-2015 from,rising about 265%.The bull market swept the whole of China,the number of Chinese investors come to a new record.When many investors think they ushered in a good time,China's stock market began to turn sharply from the second half of 2015.Shanghai index fall to 3000 points in two months.Investors worry about the stock.In response to the stock market crisis,the domestic 21 securities companies issued a joint announcement,unanimously expressed confidence in the development of China's capital market,and resolutely safeguard the stable development of the stock market,protect the stock market for country.The Commission in response to the stock market crisis,announced the suspension of new shares hairstyle.At the same time,The People's Bank of China also announced to provide adequate support.But the stock market trend can only be said to stop the decline,and did not achieve a substantial reversal.The following securities company scandal cast a shadow over the rescue action.The Circuit Breaker began after the 2016 New Year's Day,which not to save the market,but to ruin the market,and had to pause in a week.2015 annual report came out,the national team frequently appear in the listed company's annual report as a shareholder.Data show that the first quarter of this year,national team,represented by China Securities Finance Corporation Limited(CSFC),total hold shares which the market value is 1.1 trillion yuan,accounting for 5.9% of the market free market value.China Securities Finance Corporation Limited accounted for more than half of the national team and is the absolute main force.China Securities Finance Corporation Limited and Central Huijin Investment Ltd(CHI)receive dividends about 12.966 billion yuan from listed securities companies in 2016.As the representative of government funds,the investment of national team funds give the outside world a stable signal,and this paper is to study whether this signal can bring benefits to the general retail.At the same time we should also evaluate the rescue action,for providing the future economic regulation and control experience.This paper intends to sort out relevant domestic and broad literature and analyzes the relationship between the national team capital in the listed companies and the listed companies' stock market returns.In order to study the relationship between the national team and the market value of the company,the research object is the A-share listed companies in China during 2012-2015.Comparing the performance of the stock between listed companies whose shareholders contain China Securities Finance Corporation Limited or Central Huijin Investment Ltd with shareholders not include China Securities Finance Corporation Limited or Central Huijin Investment Ltd.And to further introduce equity concentration,to explore how national team capital influence the relationship between equity concentration and stock market returns.The paper is divided into six chapters.The first chapter introduces the research background,significance,ideas,frameworks and innovative points.The second chapter is literature review,combing the existing literature and commentary.The third chapter is theoretical reasoning and assumptions.The fourth chapter is research designation,showing the sample selection and data sources,variable design and model building.The fifth chapter is empirical results and analysis,with the four empirical steps,descriptive statistics,correlation analysis,regression analysis and robustness tests.The sixth chapter is conclusions and policy recommendation;it will give the research conclusions and some suggestions.Through the empirical research in this paper,the following conclusions are drawn.First of all,when listed companies has national team shareholders,their Accumulated excess rate of return are significantly higher than the companies have not national team shareholders.Indicating national team shareholders significantly enhance the performance of listed companies' stock.Secondly,there is a significant negative correlation between equity concentration and stock market returns,which indicates that the excessive concentration of equity will make the performance of listed companies tend to be weak.Finally,the appearance of national team shareholders weakened the negative correlation between equity concentration and stock market returns.The research of this paper,to a certain extent,enriches the study of stock market returns,and shows us that the national team shareholders can make the performance of the stock better than the market,meanwhile reveal the influence of national team shareholders between equity concentration and the stock market performance.Basing on the study,this paper gives some corresponding recommendations,such as giving majority of retail investors a new direction of investment and providing some suggestions to Government to adjust the market.