E3S Web Conf.
Volume 214, 20202020 International Conference on Energy Big Data and Low-carbon Development Management (EBLDM 2020)
|Number of page(s)||10|
|Section||Big Data Analysis Application and Energy Consumption Research|
|Published online||07 December 2020|
The Influence of Foreign Institutional Ownership on the Stock Liquidity in China Based on Data Analysis
Chinese Academy of Finance and Development, Central University of Finance and Economics, Beijing, 100089, China
The negative impact of foreign participation on the liquidity of companies that allow a high degree of foreign institutional ownership has been widely documented. This article provides a unique environment for the limited participation of qualified foreign institutional investors (QFIIs) in China’s A-share market, and examines how these factors affect stock liquidity in emerging markets. Contrary to previous findings, the participation of foreign investors has helped increase the liquidity of affected stocks by facilitating increased trading activity. Improved liquidity in small businesses is more important than large ones. The findings of this article are the endogenous robustness and the impact on the stock market, industry impact, and possible impact on the stock exchange. In addition, when analyzing sub-samples of QFII companies, QFII’s liquidity improvement effect is even stronger. This article aims to through data analysis on the stock liquidity provide Chinese stock market with management suggestions.
© The Authors, published by EDP Sciences, 2020
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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