The Research On Chinese Securities Analysts’ Credibility

Securities analysts play an important role in the securities market, they help to reduce the information asymmetry between investors and listed companies in theory, however, there is no certain answer to the question whether China’s securities analysts have this function or not. Inspired by this, this article focus on the credibility of Chinese analysts’ credibility and try to find the possible answer to this question.This article conducts the main research by using the data of the whole year of2013, which is collected by data collecting programme and contains37980analysis reports issued by the Chinese securities analysts. Firstly, this article find out the top10security companies based on the best security analysts ranking result in the year of2013hosted by XCF magazine. Secondly, this article picks out11899analysis reports issued by the toop10security companies from the whole samples and those analysis reports covers1304listed companies in six Chinese industries. Thirdly, this article makes a comprehensive data analysis on the selected reports and finds out the characteristics of the chineses security analysts’ analyzing behaviours.The study found that China’s securities analysts have optimistic tendency in analzing behaviours, for example, they tend to make prediction on strong stocks when choosing the analyzing objects and their credibility of analysis reports differ in the type of industry and rating level. In addition, China’a security analysts own private information but there also exist information leakage phenomenon in the Chinese securities market as well. Finally, this article put forward some corresponding suggestions to solve the founded problems in our security market.