International Standards In The A-share Valuation: Concepts, Systems And Corporate Governance Analysis

As the introduction of QFII and the declining valuation of A share, a series of discussions have been put forward. Among them, the key issues include: has the internationalization of valuing A shares been realized? Should we seize the domestic stock pricing power? To solve the first problem, we have to position the valuing level of A share properly. As for the second problem, we need to investigate the idea discrepancy of valuing A share, which is existing on domestic capital market compared to mature western capital market. Yet both the market management infrastructure and the corporate governance of listed firms have great impact on valuing of A share either in terms of level or idea.In recent years, two relatively important policies, the governmental regulations on cash dividend and shareholder structure reform, have been enforced by Chinese government which introduced a series of supportive and mandatory measures on cash dividend in 2001, 2004 and 2005, respectively. China Security Supervision Committee issued the announcement on April 29, 2005, announcing the launching of trial shareholders structure reform. The analysis of effectiveness and influence of the two measures above are supposed to be linked with the investigation of governance structure in listed firms. Therefore, we naturally derive two other issues: considering the characteristics of governance structure of Chinese listed firms, will the governmental regulations on cash dividend be able to increase the investing value of A shares? What's the exact significant influence on the valuing of A share made by the shareholders structure reform?The current researches are mainly lack of the reasonable explanations subject to China's system background such as government regulations as well as the special corporate governance with a single methodology. Thus, it is essential to seek out the proper valuing methods...