The Studies On International Institutional Investors Shorting China Minsheng Banking Corp

Since2011, the international short-seller began singing empty about China unceasingly, including Wall Street short organization last March, the agency said China’s real estate bubble was equivalent to more than1000Dubai; At the end of June last year, standard&poor’s (s&p) and Goldman sachs to singing empty Chinese bank shares, for the reason of local financing platform; Represented by muddy water companies in the United States securities analysis investment institutions, starts challenging China’s overseas listed companies constantly from June2011, including that the UBS, the flux and the big three ratings agencies attack China Minsheng banking corp. This again and again, has brought great negative impact to our country capital market and related enterprises.In recent years, the major problems in the process of Chinese economic development has gradually highlighted, China has become the best "short" object that international institutional investors can choose, the strength that "short" China become more and more powerful. International institutional investors short China Minsheng Bank phenomenon can be regarded as giving us a wake-up call, it is also a particularly important event in Chinese financial sector. Therefore, investigating the reason of Minsheng Bank stock volatility, and discussing the countermeasures to deal with the phenomenon that international institutional investors short Chinese bank, and the enlightenment that this incident gives to the banking of our country and the Chinese stock market is very meaningful.Through the study of the event about international institutional investors shorting China Minsheng bank, we reveal the real purpose of international institutional investors and idiomatic method, offer help for listed companies in China to face the short of the international institutional investors and help them to take defensive measures early in the later development. What’s more, based on the cause of Minsheng bank sang short, higher requirements are put forward in the future for the Minsheng bank of China to value its assets quality and risk management ability, strengthen and improve the risk prevention and control ability, And also play a warning role in Chinese banking, higher requirements are imposed on the banking industry in China to improve its risk prevention and control and early warning mechanism, and profitability for its sustainability requirements are put forward. In the process of the event study, we found that our country enterprise’s weakness before shorting counter and shorting institutions in China have no awareness of cost problems in other market in the world. Through the study of the two problems that our country capital market lack of short mechanism, further accelerating the pace of short-seller building is the inevitable requirement in the process of perfect capital market in China, formulating the related legal policy by the Chinese government and the promotion of China’s capital market development to adapt to the international situation has a realistic significance.Chinese enterprises have been shorten by international institutional investors many times, Chinese banking industry has become the selling object of international institutional investors, this makes our country’s stock market and the enterprises to think of themselves. In the dual pressures of the economic downturn and steady growth, the quality of Chinese banking assets is facing a new challenge. From the experience that China Minsheng Bank successfully coping with the international institutional investors short behavior, China enterprise need to adjust the countermeasures in real time according to the current economic form in order to strengthen cooperation and mutual assistance between investors.China enterprise also need to improve their assets quality and set up perfect capital market crisis management mechanism, if necessary, use law to fight back; Chinese securities market need improve Chinese short mechanism, keep sustainable growth of our economy, focus on the development of Chinese institutional investors, strengthen the supervision of short behavior and improve the supervision of foreign investment banks. These revelations will boost the sustainable development of China Minsheng Bank,they will also provide reference for the development of Chinese enterprises and securities market.