Research On The Effect Of QFII's Shareholding On The Performance Of Listed Companies In Manufacturing Industry

China's adherence to the basic national policy of reform and opening up has made the opening up of the economy an indispensable requirement.With the wave of economic globalization engulfing the world,if we completely liberalize the domestic capital market,China's not fully mature market will not be able to accept the impact of international hot money,so China introduced the QFII mechanism in 2003.Qualified foreign institutional investors(QFII)mechanism is a transitional system,when a country or a region where the currency is not yet convertible.,and the capital account has not yet open,in order to achieve open capital market gradually,so set up the limit to the introduction of foreign capital.QFIIs have strong financial strength and more professional investment experience.It is generally believed that the participation of QFII in China's securities market has a positive effect on promoting the growth of the domestic securities market,improving the investment philosophy of China's securities market,changing the investment atmosphere of the securities market and promoting the improvement of the governance structure of listed companies.There is still no conclusion on whether QFII will participate in corporate governance and improve company performance.This paper reviews the literature related to QFII and the existing theories related to this research,and analyzes the intrinsic motivation and mechanism of the QFII.This paper selects manufacturing listed companies in Shanghai and Shenzhen Stock Exchange from 2008 to 2016 as the sample.Then in the empirical analysis,we make descriptive statistics analysis first,and then build the model of the QFII shareholding behavior impact on corporate performance for empirical analysis.The results of this study show that,First of all,the performance of companies with QFII shareholdings is better than those without QFII shareholdings.Secondly,QFII as a shareholder,tend to follow the ideals of shareholder activism and choose "vote by hand"behavioral pattern.That means the bigger the QFII shareholding ratio,the better the performance of the-listed companies.Thirdly,the higher the proportion of QFII relative to the largest shareholder,the better the performance of the listed companies.Because when large shareholders in the company try to make some decisions which may damage the company or the other shareholders,the existence of the QFII's can play a big role,QFII can check and balance those activities and improve the company's business performance.QFII will play an increasingly important role in the future development of China's securities market.QFII should establish a sense of responsibility to actively participate in corporate governance,give full play to its advantages,plan for the future development of listed companies and create higher corporate performance.Listed companies need to constantly enhance the competitiveness of the enterprise in the industry and the sustainable development ability to attract more QFII investment,also should give QFII more space to grow up and make full use of the QFII professional experience in corporate governance and effective Suggestions.The government need appropriately relax the institutional constraints of QFII,introduce more excellent QFII into China's securities market,and strengthen the construction of securities market to create a healthy external environment.