| Since the reform and opening up,China’s economy has achieved more than 40 years of rapid growth based on the factor-driven development model of capital and labor,but with the changes in resource supply and demand,labor costs and demographic structure,this kind of crude economic growth is unsustainable."The core of promoting high-quality economic development is to improve total factor productivity.In the context of innovation-led development,the sustained growth of total factor productivity cannot be achieved without the effective support of the financial system,as the "converter" and "catalyst" for regulating the kinetic energy of economic development,China’s bank-led financial system has lagged behind in improving science and technology and enhancing total factor productivity.As a"converter" and "catalyst" for regulating economic development momentum,China’s banking-led financial system has lagged behind the demand for improving technological innovation and total factor productivity,and is seriously restricting the efficiency of financial services to the real economy.To support high-quality economic development,it is urgent to increase the proportion of the direct financing market,especially the efficient stock market to promote the transmission of information within the market with price signals,so as to reasonably guide the effective allocation of capital and achieve high-quality economic growth.Especially in the context of the new development pattern of domestic and international "double cycle",how to take the opening up of the stock market as an opportunity to promote the improvement of total factor productivity is the key to financial services for the real economy.In recent years,China’s stock market has insisted on market-oriented and legalized development,and the restrictions on access to foreign institutions have been gradually removed.In order to further promote the opening up of China’s high-level stock market and accelerate the pace of integration into the global financial market,the interconnection trading mechanism of Shanghai and Hong Kong stock market transactions was officially launched on November 17,2014,as an important initiative for the two-way opening up of China’s stock market.The "Shanghai-Hong Kong Stock Connect" system is conducive to attracting foreign investors to participate in the A-share market in Chinese mainland by relying on the Hong Kong financial market,which is not only conducive to improving China’s retail-oriented investor structure and expanding investment channels,but also improving stock market pricing efficiency and resource allocation efficiency.In this regard,this paper systematically analyzes the impact of the "Shanghai-Hong Kong Stock Connect" trading system on the total factor productivity of enterprises and the effective allocation of factors among enterprises,which not only provides a theoretical basis for the further increase of the orderly opening of the stock market,but also provides a basis for theoretical analysis.This paper not only lays a theoretical foundation for further increasing the orderly opening of stock market,but also provides important policy basis for promoting high-quality economic development and effective financial services to the real economy.This paper follows the logical line of "problem formulation-theoretical analysis-empirical test-proposal".Firstly,we comprehensively review the literature on the factors affecting total factor productivity,financial liberalization and macroeconomic growth,and the economic consequences of stock market liberalization.Secondly,we introduce the change of China’s stock market from a one-way open system represented by the qualified foreign institutional investors system to a two-way open system represented by the "Shanghai-Hong Kong Stock Connect" trading system.The theoretical basis for the impact of stock market liberalization on total factor productivity is elaborated from traditional financial deepening theory and information asymmetry theory.Then,using the "Shanghai-Hong Kong Stock Connect" trading system as an exogenous event of stock market liberalization,we empirically test and analyze the impact of stock market liberalization on the total factor productivity of enterprises in China,and further verify that stock market liberalization can promote the transfer of capital factors to high-productivity enterprises,so that enterprises can achieve faster growth and higher market share,thus increasing the total factor productivity of the industry as a whole.thus improving the total factor productivity of the overall industry.Finally,based on the results of the theoretical analysis and empirical tests,we propose policy recommendations to further expand the economic growth effect of stock market liberalization and promote the sustainable high-quality development of China’s real economy from three dimensions: government departments,real enterprises and investors.The details are as follows.First,this paper conducts a theoretical analysis of the relationship between stock market opening and the impact of total factor productivity.On the basis of introducing the background of the paper,the significance of the study,combing domestic and foreign research literature and proposing the structural arrangement and research methodology of the paper,the mechanism of the effect of stock market opening on the total factor productivity of enterprises is proposed from the feedback effect of stock price information by combining the basic theories of traditional financial deepening,information asymmetry,principal-agent and resource allocation,and the mechanism of the effect of stock market opening on the total factor productivity of enterprises is proposed with regard to the foreign investors introduced by the opening of the stock market,by playing the information The paper also discusses how the opening up of the stock market can improve the total factor productivity of enterprises through the intra-industry effect,and how to improve the inter-industry factor allocation through the reallocation effect.Second,this paper empirically tests the relationship between stock market opening and total factor productivity.In this paper,we use the data of Chinese A-share listed companies,the "Shanghai-Hong Kong Stock Connect" policy as a quasi-natural experiment,the double difference model,the propensity score matching method,the moderating effect model,and the group regression model to study the effect of the implementation of the "Shanghai-Hong Kong Stock Connect" policy on total factor productivity in China.The study investigates the effects,mechanisms and heterogeneity of the implementation of the Shanghai-Hong Kong Stock Connect policy on total factor productivity.The results of the study found that(1)The stock market liberalization represented by "Shanghai-Hong Kong Stock Connect" can effectively improve the total factor productivity of enterprises,taking into account the time lag,industry differences in factor elasticity,replacing the explanatory variables,changing the propensity score matching method,excluding other policy interference,controlling for the effects of unobservable factors of industry or region changes over time,placebo test,and a series of robustness tests controlling for the time trend of the factors affecting firms’ total factor productivity,the positive effect of stock market opening on firms’ total factor productivity still holds.(2)This paper demonstrates that the stock market liberalization represented by the "Shanghai-Hong Kong Stock Connect" can enhance the total factor productivity of enterprises through the information feedback mechanism of stock prices,which is manifested by the information advantage of foreign investors introduced by the "Shanghai-Hong Kong Stock Connect" policy.The information feedback mechanism is manifested in the fact that foreign investors introduced by the "Shanghai-Hong Kong Stock Connect" policy,with their information advantages,can explore the content of idiosyncratic information in the stock price and incorporate idiosyncratic information into the stock price through market transactions,so that the stock price can truly reflect the intrinsic value of the company and improve the stock pricing efficiency,while the stock price containing idiosyncratic information will further play a feedback effect,leading the management to learn and use idiosyncratic information from the stock price to improve corporate governance and investment efficiency,thus improving the total factor productivity of enterprises.Further study finds that there is asymmetry in the pricing efficiency mechanism,and when the stock price is undervalued,the implementation of the "Shanghai-Hong Kong Stock Connect" system has a stronger effect on the total factor productivity of enterprises through the pricing efficiency mechanism.(3)When enterprises face different financial market environments,industry factors or individual characteristics,there are significant differences in the ability and motivation of enterprises to use the implementation of the "Shanghai-Hong Kong Stock Connect" policy to release information on stock price characteristics,resulting in significant differences in the effect of the "Shanghai-Hong Kong Stock Connect" policy on enterprises’ total factor productivity.The heterogeneity of the effect of the "Shanghai-Hong Kong Stock Connect" policy on the total factor productivity of enterprises is obvious.First,in terms of financial market environment,the level of banking system development,stock market size,and stock market liquidity are more mature to unleash the effect of stock market liberalization on firms’ total factor productivity.Second,in terms of industry differences,the effect of stock market liberalization on firms’ total factor productivity is stronger in highly competitive or high-tech industries.Finally,in terms of individual differences,the effect of stock market liberalization on firms’ total factor productivity is stronger in risk-taking ability,high growth and small-scale firms.(4)When the "Shanghai-Hong Kong Stock Connect" policy is implemented,under the guidance of a more efficient stock price feedback mechanism,the allocation and transfer of capital factors will be more sensitive to changes in total factor productivity,i.e.,capital factors will be transferred from low-productivity firms to high-productivity firms,and the stock market will be stimulated to give full play to the capital allocation function,thus enabling firms to achieve faster growth and higher market share,and enhance the total factor productivity of the industry as a whole.This resource allocation effect is more pronounced for SOEs because of their ability to dominate the market resource allocation by virtue of their dominant position.Thirdly,we propose countermeasures for the economic growth effect of capital market opening.On the basis of theoretical analysis and empirical test,through analyzing the effectiveness,mechanism and heterogeneity of the economic growth effect of China’s "Shanghai-Hong Kong Stock Connect" policy,we will try to put forward some targeted policy suggestions from three market subjects,namely,government departments,real enterprises and investors,in order to expand the economic growth effect of capital market opening and promote finance to better serve the high-quality development of the real economy.For government departments,one should continue to deepen the opening of the capital market,promote the accelerated formation of a high-level opening pattern,strengthen the links and communication between domestic and foreign capital markets,continue to optimize and strengthen the construction of the interconnection mechanism,give full play to the positive role of capital market opening on capital attraction and information transfer,improve the efficiency of stock pricing,and in this way play a positive role in the optimal allocation of capital market resources.Second,we should improve the market trading mechanism,guarantee the function of stock price information transmission,enhance the fairness of trading,and actively promote the construction of capital market intermediaries,strengthen the laws and regulations on information disclosure of listed enterprises,and actively improve the construction of capital market system.Third,we should improve the risk prevention mechanism under open conditions,effectively protect the legitimate rights and interests of investors,and guard the bottom line of no systemic financial risks in order to maintain the stable and orderly operation of China’s capital market.For the enterprise level,one should make full use of the capital market information efficiency mechanism to improve the core competitive ability of enterprises.Second,to improve the level of internal corporate governance,improve the corporate articles of incorporation and multi-level internal control structure,and strengthen the responsibility constraints.Third,we should strengthen the enterprise’s risk-taking ability and improve the enterprise’s innovation ability.For investors,first,we should improve the concept of value investment,strengthen the awareness of investment risks,actively and positively learn relevant basic financial knowledge and improve their financial literacy.Secondly,they should actively take the responsibility of shareholders,give full play to the supervision effect of capital market information efficiency,and then effectively play the economic growth effect of capital market opening. |
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