Study On The Motivation And Performance Of Introducing Strategic Investors Into Ningbo Port

In 1999,Beijing Shougang Co.,Ltd.was listed on the stock exchange and shares were placed to strategic investors,and this transaction represented the formal entry of strategic investors into the listed companies in China.In March 2020,the China Securities Regulatory Commission further elaborated the meaning of strategic investors: strategic investors are investors who hold a large number of shares of strategic investors for a long time,have important strategic resources,have a high integrity rating and can achieve synergistic development with the invested enterprises,which makes the strategy of introducing strategic investors more popular among listed companies in various industries.This has led to the strategy of introducing strategic investors being favored by listed companies in various industries.Along with the national release of the "Yangtze River Delta Regional Integrated Development Plan Outline" to promote mutual collaboration between ports in the Yangtze River Delta region and accelerate the creation of the Yangtze River port group "one,two wings,multiple links" development pattern,coupled with the impact of the new crown pneumonia epidemic and Sino-US trade friction on port business,Ningbo Port decided to implement the introduction of strategic investors This paper is based on this background.Based on this background,this paper adopts a combination of normative and case study approaches to study the motivation and performance of Ningbo Port in bringing in Shanghai Port Group as a strategic investor.Firstly,this paper introduces the background of Ningbo Port and the strategic investors,and outlines the process of introducing strategic investors to Ningbo Port based on the materials published by the company.Secondly,based on the case presentation,the motivation of Ningbo Port’s introduction of strategic investors is analyzed at both macro and micro levels by combining strategic alliance theory,proxy theory and synergistic effect theory.Finally,for the content of the motivation analysis,the realization of the motivation is verified from two perspectives of financial performance and non-financial performance.Among them,three perspectives are chosen to analyze the change of non-financial performance of the company,including the company’s operation,core competitiveness and corporate governance ability.The financial index analysis method and EVA analysis method are used to verify the impact of Ningbo Port’s introduction of strategic investors on the financial performance of the company through horizontal and vertical comparative analysis,and the event study method is used to explore the market reaction brought by this event.The paper concludes that,firstly,the main motivation of introducing strategic investors to Ningbo Port is to consolidate its market position and build a strong international port;secondly,Ningbo Port has improved its overall competitiveness in terms of corporate governance,business operation and core competence structure through the introduction of strategic investors;secondly,the introduction of strategic investors has improved its financial performance;and finally,the introduction of strategic investors has improved its financial performance.Finally,the introduction of strategic investors can trigger the follow-on investment effect and improve the financing ability of the enterprise.On this basis,the following suggestions are also made for the future development of Ningbo Port and the port enterprises that plan to implement the transformation and upgrading strategy: Ningbo Port should control management costs and improve management efficiency;strengthen innovation and research and strengthen the construction of smart port;improve the efficiency of capital utilization and increase the asset turnover rate.For the port enterprises planning to transform and upgrade,they should focus on resource integration and form synergy effects,and in introducing strategic investors is to choose suitable introduction objects,while insisting on scientific and technological innovation to improve core competitiveness.