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The liquidity value analysis of the shares of listed companies in China

Author: GuYao From: www.yourpaper.net Posted: 2009-05-31 02:50:11 Read:
Abstract: In the context of the split share of tradable shares of listed companies in China has a special liquidity value, after the completion of the split share structure reform, China's stock market experienced a rose and a roller-coaster, and the share reform brought the value of stock liquidity adjustment There is a certain relationship. This article focuses on expounded After the share reform original non-tradable to the the new characteristics of of the the liquidity sexual the value of of the shares and tradable shares.
Keywords: liquidity value; outstanding shares; non-tradable shares; split share structure reform

Liquidity is one of the basic characteristics of the stock. Before the split share structure reform, due to our special stock market system design, divided into shares of listed companies tradable shares and non-tradable shares, the liquidity of the non-tradable shares is restricted, the value of outstanding shares of liquidity because of this special dual structure The design is different from the other countries the value of stock liquidity. This paper will split share structure reform of the shares of listed companies in China before and after the liquidity value of comparative analysis.

First, the in China under the shares of listed companies in the the split share structure background fluidity value of

(A) less tradable shares, the liquidity value-added. Chinese enterprises listed cumbersome approval process. In the under the system of of the split share structure of the, the a listed companies of there are about two-thirds of the of the shares can not be circulation in the secondary market, further exacerbating the each the degree of scarcity of of in which the our country can be circulation with this stock. At the same time, as China's rapid economic development, investment demand is strong, and the choice of investment products in China is still relatively small. Stock investment by virtue of its high rate of return and strong liquidity social capital has a strong appeal. The relative lack of rapid expansion of investment demand and supply of tradable shares, the price of the outstanding shares of continuously improve.
(B) the the the fluidity of of the speculative value of in the stock, the stop-loss of higher value. Since the majority of the shares of the listed companies can not flow, the market value of the outstanding shares is low, easy to hype Makers manipulated price, profiteering provide some opportunity. China's stock market speculation in vogue, the stock turnover is much higher than mature capital market, has distribution rights may get huge speculative gains. For small investors, the liquidity of the stock not only make it possible to participate in the share of speculative gains, but also a decline in the market, there is the opportunity to sell stocks in a timely manner, to reduce losses.
(C) fluidity become the export of the the the the main interests of of the shareholders of tradable shares. Control of listed companies in China is basically in a quiescent state, stable ownership structure. Controlling shareholder of the almost all of, directly or indirectly, with a state-owned the nature of, ownership of for the main body virtual-bit, large shareholders the lack of the the driving force supervision on the the managers, managers do not have be replaced as a due to the to poor management of a sense of crisis. In addition, the incentives for managers is not in place, China's enterprises managers pay a fixed remuneration, and the low level of remuneration, incentive enough to play its due role, but job consumption, promotion opportunities gains accounted for a significant proportion. These hidden income is closely related to firm size, resource managers can control. Therefore, managers have a tendency to expansion, this expansion may sometimes not to increase corporate value as a basis for decision making. Stock of the controlling shareholder can not flow in the secondary market, so that it does not really care about the value of the stock, but will be unequal related party transactions, the property of listed companies to provide security, guarantee, or even directly invaded and occupied the capital of listed companies profit-from listed companies. In the context of such a system, the interests of the holders of tradable shares by the infringement can be foreseen, the rational choice of the holders of tradable shares can only be speculation, hoping to earn money through the stock changed hands.

Second, the split share structure reform original non-tradable liquidity value analysis

(A) of the split share reform is completed in a short period of time, many listed companies lifted concentration to exert enormous pressure on the market, easy to suppress the formation of the stock price. The period of time after the share reform, the secondary market and absorption of non-tradable shares capacity restrictions, the original non-tradable shareholders of circulation right is still insufficient liquidity value of a gradual upgrade process. But different from the with the before the share reform, such a the fluidity of of the restrictions a non-shareholders of tradable shares depending on the market conditions autonomous decision-making, the results of of the weighing the pros and cons. Some large shareholders initiative announced commitment to holding stocks extended, on the one hand, shows the largest shareholder optimistic about business prospects, other large shareholders can also maintain the share price in a bear market.
(B) non-tradable shareholders are generally higher percentage of shares held by the largest shareholder of the stock liquidity value. The stock of the largest shareholder of in the stock market transfer, might be interested in share price generated adversely affected, especially in the the the when the is not good of the the stock trend, the to suppress the an even more strongly, the the the interests of of the largest shareholder of due to fell in stock price likely to suffer the huge losses. Therefore, the the the fluidity of of the stop-loss value of on the the an insignificant shareholders' significance in large. When the major shareholders want to sell all or part of the shares in the enterprise when faced with new investment opportunities, it is also possible to give up trading in the secondary market, and the choice of the way of the transfer agreement.
(C) a substantial shareholder profit way better than the exercise of the right of circulation. With control of the business, large shareholders can be more effective incentive and restraint by hiring more capable managers, increase revenue. Is accompanied by the split share structure reform introduced a series of policies, regulations, provided the conditions for the implementation of the improvement in the corporate governance structure, new equity incentive incentives. Largest shareholder, unless there is a very good investment opportunity, is not necessarily the realization of the shares of the enterprise, even if there are good investment opportunities, may be considered by the listed company of the investment without having to take the risk of equity is realized. Similarly, due to the control of the enormous gains in the stock price exceeds the value predicted by the largest shareholder, the largest shareholder may continue to hold stock or realizable only the smaller part. Third, the reform of the split share liquidity value of the original shares outstanding

The (a) of the share reform program is after the announcement of, the the speculative value of the fluidity increased significantly. In due to to the the lock-up period of of the There was a time, non-tradable shares into the secondary market the consisting mainly of shareholders of tradable shares on the the short-term operation did not immediately the formation of a threat to, but is of the major changes in the of the system tend to will of Adjoint huge of the opportunities for speculation, the the fluidity of of the speculative the value of will vary increase in. Attract a large number of social capital in the stock market to make money effect, driven by the influx of the outstanding shares of the scarcity of more obvious the speculative value further value-added.
(B) the lifting of the ban concentrated arrival of the excessive depreciation of the value of the liquidity. Holdings of non-tradable shares cost far less than the cost of holding of the shares outstanding, sold at lower prices still have larger profit margins. With the advent of the lifting of the ban, the market expected the sell-off of non-tradable shareholders will lead to a decline in stock prices, and even the formation of a certain degree of panic in the market. In the the overall Quotes of the the recent stock markets fell, despite the there is the large announced the extension of to shareholders the the shareholding commitment period, but's just an individual case, does not have the of universal significance. The market for large shareholders to sell panic, exacerbated due to the lifting of the ban centralized arrival. In the general decline in the stock market, liquidity speculative value, investment value is badly weakened, a stop value has improved. Excessive expectations of major shareholders to sell, the liquidity of the stock is undervalued.
(C) go through a concussion, after the period of adjustment, the have been hit by China's stock market will the gradual elimination of, the fluidity value of the return normal levels. After the share reform, due to the split share of the outstanding shares of the added value of mobility disappear. Step-by-step through the absorption of non-tradable shares, the market panic sell-off of large shareholders gradually weakened, mobility excessive depreciation will be able to reply. The expansion of the secondary market, can not meet the demand for investment due to the number of shares available for trading resulting phenomenon through the hype to raise the stock price will be reduced. But the complex factors in the stock price, stock price volatility is the value of stock speculation and short-term investors stop source of value. With the maturity of the stock market, long-term investors and investors will increase the proportion of value investing. Speculative opportunities arise, investors will be more cautious to choose whether to exercise the right to circulation on the decline of the stock will have a stronger tolerance, but may be the poor performance of the stock market, blue-chip stock holdings.
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