Research On The Impact Of Analyst Recommendation On China CRRC’s Stock Price

On March 8,2019,CITIC Securities and Huatai Securities were in danger in PICC and China Securities for two downgrades of listed companies,to "sell" rating,on the same day,CITIC Securities,Huatai Securities,PICC,China Securities for four listed companies have been stock drop stop,the market fell sharply,the Shanghai and ShenZhen two city evaporation value day is 2.5 trillion RMB.It can be seen that the influence of securities analyst rating report is increasingly important with the development of the capital market.The study on the influence of securities analyst rating report can provide reference for the development of the analyst industry and the reference of investors to the analyst rating report.This is a question worth studying.As professional researchers,securities analysts connect the listed companies with investors,analyze the potential investment value of listed companies for investors,predict the actual stock prices of listed companies according to relevant data,and issue rating reports for investors to refer to when investing.By reading the literature found on securities analyst rating report influence stock prices mostly focus on empirical research,namely the rating report for the influence of many listed companies in the stock market,the prevailing academic idea is that the rating analysts report can bring certain excess returns for target shares of listed companies,and the influence and brokers,analysts reputation,reputation and scale of the listed company size,growth of listed companies and other factors.In this paper,the research scope is narrowed to individual stocks.CRRC,a dual-listed AH company with no major events from 2015 to 2018,is selected.The analyst rating report of major domestic and foreign securities firms and CRRC AH’s share price in the same period on December 31,2015 and December 31,2018 are used to conduct the research.Computing analysts rating report released one day,five days,before and after,published in three events during the period of fifteen(15)days before and after the Car cumulative excess yields,cumulative abnormal turnover rate and AH shares than found in the domestic and foreign securities firms to China car all affect the A shares and H shares and affect different cars in China A shares by the positive analyst ratings have accumulated excess returns more,after the a-share investors are influenced by analyst ratings volumes h-shares investors more frequently,at the same time found in the Chinese car AH shares than increased obviously after analysts rating report,It is believed that this phenomenon is related to the different reactions of investors in the two places to the rating report,and thus aggravates the market segmentation between CRRC Shanghai and Hong Kong.