The Study On The Influence Factors Of QFIIs' Stock-holding Preference

In 2018,mainland stock market is suffering bearish for the trade war and the economic downside risks.Facing with changing capital market,opportunities and risks exist.Because mature foreign investors have experience,it's more clear to study the foreign investing behavior for learning the whole market.it has been 16 years since it was introduced.Since China introduced QFII(qualified foreign institutional investor)in 2002,the numbers and the investment quotas of Qualified Foreign Institutional Investor are gradually increasing and become the second largest institution investor.Its investment behavior and shareholding preference have influences on China's stock market and other securities markets.Therefore,the analysis of QFII shareholding preference provides a better way to understand QFII investment methods and behaviors,inspiring the rational development of Chinese stock market.It can be predicted that in terms of optimizing QFII and RQFII systems,the regulatory authorities will relax the qualification and investment restrictions on QFII in the future,and introduce new policies to supervise and diversify the capital market and control risks,so as to make the capital market develop in a more formal and healthy direction.Firstly,this paper introduces the essays reviews on QFII and institutional investors' shareholding at home and abroad,introducing China's QFII system,and expounds the development process of QFII system along the way.Secondly,it describes the overview of QFII related theories,including foreign portfolio investment theory and principal-agent theory,and explains the risks,benefits and principal-agent problems that QFII needs to face as a stakeholder.Then,through the analysis of these relevant theories as the introduction and according to the theory to summarize and put forward empirical hypothesis,hypothesis respectively are the company's fundamentals(solvency,profitability,growth,operating ability)and the company's market fields(valuation index,stock price index).Then,this paper focuses on analyzing all shareholding data of QFII from 2012 to 2017,which are compiled with the top of 10 shareholders of tradable shares disclosed in the annual report of listed companies,excluding the data of listed financial companies.The principal component regression method is used to understand the shareholding preference of QFII.The proportion of shares held by QFII is taken as a dependent variable,and the market fields and fundamental indicators of holding stocks as independent variables.The empirical results and assumptions are mostly the same.Finally,the last chapter summarizes the previous research conclusions,comparing with the hypotheses,and looks forward to the future and gives some suggestions basing on the conclusions.