B-share Discount And The Solution Under The Background Of Chinese Securities Market Internationalization

B-share,also known as “RMB special stocks”,has played a very important role in raising foreign exchange funds for domestic enterprises at the beginning of the Chinese stock market.However,with the continuous development of the internationalization of Chinese stock market,the financing function and attractiveness of the B-share market have been greatly reduced.In contrast to other countries,the dual-listed companies in Chinese stock market have seen the phenomenon of B-share discount puzzle.Under the background of Chinese stock market internationalization,it is valuable to study the problem of B-share discount puzzle and the solution of B-share market.First of all,the paper combs the history,present situation and the existing problems of the B-share market.Secondly,there is a theoretical and empirical analysis on the problem of B-share discount.In the theoretical analysis part,the information asymmetry hypothesis,the liquidity hypothesis and the differential demand hypothesis are discussed.In the empirical analysis part,the paper uses the panel data analysis model to study the factors that affect the B-share discount rate of dual-listed companies.The result shows that the higher the degree of information asymmetry,the greater the discount rate of B-share;the higher the degree of the liquidity of B-share,the smaller of the discount rate of B-share;the greater the relative supply,the greater the discount rate of B-share.Finally,the paper introduces the solution of B-share market under the background of Chinese securities market internationalization,and puts forward the policy suggestion that the final exit of the B-share market is gradually closed.