| Until 1998,the CSRC put forward the important strategy of "developing institutional investors beyond the normal way",which put institutional investors in the important position of developing and improving the environment of China’s securities market.When the newly established “KaiYuan” fund enters the capital market and begins to operate,it also means that professional institutional investors really enter the Chinese market.Subsequently,the types and scale of all kinds of institutional investors gradually increased,and the influence of institutional investors in China’s securities market gradually emerged.Compared with individual investors,institutional investors in China are a special group of investors in the securities market.Compared with individual investors,they have a large amount of capital,which can often influence the trend of stock price.They are called stock makers.At the same time,institutional investors are regarded as professional value investors because of their professional investment management team,strong capital strength and long-term investment experience.Their investment is relatively rational and can guide the market to operate reasonably and effectively.When selecting stocks,the institutional investors will consider the stocks that can bring the maximum profit while taking the smaller risk.This kind of rational behavior makes the institutional investors be rewarded by the majority of investors to guide and stabilize the market expectations.However,in practice,institutional investors are unable to achieve absolute rationality.Therefore,institutional investors can not fully follow the principle of rationality in stock selection,so there will be preference errors.Some differences in shareholding preferences can not be explained by the standard financial framework.At the same time,due to the differences in risk preference and resource endowment of different institutional investment,different institutional investors will also have differences in investment decisions.A large number of studies also show that there is "herd effect" among institutional investors,which is not completely rational investors.Based on the data of A-share listed companies in China from 2009 to 2018,this paper studies the shareholding preference of institutional investors in China and the industry preference under different valuation levels,and analyzes the difference of shareholding preference from the perspective of domestic and foreign institutional investors and heterogeneous institutional investors.On the basis of reviewing and drawing lessons from the research on institutional investors’ shareholding preference of domestic and foreign scholars,this paper determines the research ideas of this paper.Combined with the actual situation of China’s stock market,thispaper mainly uses descriptive statistics to sort out the development process of institutional investors and the status of institutional investors’ shareholding preference.It mainly analyzes the industry,performance,market value,valuation,risk and liquidity preference of the company,and forms the development process and shareholding preference of institutional investors in China We should have a clear understanding,and define and measure the types of shareholding preference of institutional investors.Then,it makes a theoretical analysis of herding,noise traders and institutional investors’ heterogeneity.Then,it makes a theoretical analysis from the perspective of institutional investors’ shareholding preference in stock investment,and analyzes the differences between domestic and foreign institutional investors and heterogeneous institutional investors,on the basis of which the corresponding empirical research is carried out.Using Tobit model to apply panel data to empirical research on institutional investors’ shareholding preferences,find out the shareholding preferences of major institutional investors in China.Then we use the data collected in this paper to analyze how institutional investors prefer valuation in different industries.Then we also use Tobit model and panel data to do empirical research on institutional investors according to two classification methods,namely,domestic and overseas institutional investors,as well as pressure sensitive and pressure resistant institutional investors,respectively,to compare different types of institutional investors’ shareholding preferences.Finally,based on the analysis of empirical conclusions,this paper analyzes the shareholding preferences of institutional investors in China,as well as the shareholding preferences and differences of different institutional investors.On the basis of this conclusion,it looks for the reasons that may lead to the conclusion,and puts forward relevant countermeasures and suggestions.The conclusions of this paper are as follows:(1)social security funds and insurance companies,public funds and QFII all show significant preferences for companies with good operating performance,low risk,low asset liability ratio,small stock price volatility and large company scale.However,there are differences in equity concentration and liquidity;compared with institutional investors,they prefer moderately valued corporate stocks.(2)For domestic and foreign institutional investors,as well as pressure resistant institutional investors and pressure sensitive institutional investors,there is a common significant preference for stocks with good operating performance,low risk,large company scale and long listing days.The investment philosophy of institutional investors is similar,which shows that the domestic stock market is gradually maturing,whether it is institutional investors or pressure sensitive institutional investors Individual investors should follow the principle of prudence in stock selection.(3)Pressureresistant institutional investors have a positive and significant preference for the liquidity of stocks,while pressure sensitive institutional investors have no obvious preference for the liquidity;pressure resistant institutional investors have no obvious preference for the equity concentration,but pressure sensitive institutional investors have a significant positive preference;(4)domestic institutional investors are more inclined to the liquidity Companies with high concentration of equity are preferred,while foreign institutional investors do not have obvious preference,and foreign institutional investors will also invest in companies with high asset liability ratio,which shows that foreign institutional investors believe that companies with relatively high asset liability ratio are also of great investment value.From the perspective of risk indicators and volatility indicators,foreign institutional investors do not like stocks with high volatility,while domestic institutional investors will prefer such stocks,resulting in higher risk for domestic institutional investors.According to the research conclusion,this paper puts forward countermeasures and suggestions:(1)improve the construction of securities market laws and regulations,give participants reasonable expectations,so as to correctly guide the behavior of institutional investors,reduce the irrational fluctuation of the market;(2)Promote the change of investor structure in China’s stock market.Change the investment concept of individual investors,increase the market share of institutional investors,and finally form a market investor structure dominated by institutional investors;(3)optimize the incentive system of institutional investors’ managers,and avoid short-sighted tendency;(4)effectively supervise QFII investment behavior,and guide the long-term value investment concept.Regulatory authorities should strengthen the supervision of QFII investment behavior,effectively guide institutional investors to reduce frequent transactions and firm value investment. |
