The Impact Of "Shanghai-Hong Kong Stock Connect" Trading System On The Investment Efficiency Of Listed Companies

Evidence from years of reform and opening up have proved to us that,Actively promoting the policy of opening to the outside world plays a vital role in promoting the reform of China’s economic and financial system.Intensifying our efforts to open up to the outside world is beneficial to the further development of our country’s economic level,and it also can be in favor of promoting the progress of the society.Now,in order to promote the country’s supply-side reform and ensure the smooth operation of the economy,the government has formulated relevant policies and actively expanded the opening degree of the stock market.Equity market opening can be thought of simply like this: It is to open the mainland stock market to foreign investors and allow them to participate in various economic activities in the local stock market.The "Shanghai-Hong Kong Stock Connect" policy is a landmark and important measure of the opening of the stock market.The opening of the stock market has strengthened the exchange of information among investors from multiple regions,made it easier for mainland investors to learn from the experience of foreign investors,and helped improve the operation efficiency of the stock market and promote the healthy development of China’s stock market.This paper uses the relevant practical data of the "Shanghai-Hong Kong Stock Connect" policy to study a series of changes the stock market opening brought to China’s mainland listed enterprises.Based on the corporate governance theory,principal-agent theory,as well as theory and so on foreign investors information advantage,the author selects relevant A-share listed companies as research samples.According to the relevant data of the above policy implementation,the author established Differential propensity score matching model(PSM-DID)to research and analyze the stock market is open for listed companies in our country the influence of investment efficiency and its influencing mechanism.Through empirical research,we find that : 1.The implementation of "Shanghai-Hong Kong Stock Connect" system has a significant positive impact on improving the investment efficiency of listed enterprises in China;2.Continue to explore the intermediary mechanism that the implementation of "Shanghai-Hong Kong Stock Connect" affects the investment efficiency of enterprises,and came to the following conclusions.The two major intermediary mechanisms for the opening of the stock market to improve the investment efficiency of enterprises are to improve the level of enterprise management and ease the financing constraints of enterprises.In the robustness test,the author grouped the samples according to the types of investment inefficiency,and the result turns out that,after the official opening of the stock market system,the inefficient investment behavior of the over-investment sample group was more effectively inhibited than that of the under-investment sample group,and the investment efficiency was significantly improved.In addition,the stability test confirms that the impact of "Shanghai-Hong Kong Stock Connect" on the investment efficiency of listed companies is not caused by other factors before the implementation of the policy,nor is it affected by the inherent characteristics of the company.It does exist.The "Shanghai-Hong Kong Stock Connect" policy is one of the most representative measures in China’s stock market opening measures.It can promote the integration of the mainland stock market with the international market,make the stock market of our country have a brighter development prospect.In this paper,we study the stock market is open for micro enterprise economic activity,for the related study provides empirical evidence,the results also showed that the opening of the stock market is conducive to the improvement of the investment efficiency of enterprises.And it can also improve the allocation of resources in the stock market,improve the stock market’s ability to service the real economy,lay a foundation for the long-term development of the stock market.Therefore,further opening the stock market is of great significance to promote the steady development of China’s economy.