Can "Shenzhen-Hong Kong Stock Connect" Ease Financing Constraints?

On December 5,2016,the "Shenzhen-Hong Kong Stock Connect" was officially launched,which was another important measure for the interconnection between the mainland stock market and the Hong Kong stock market after the " Shanghai-Hong Kong Stock Connect".Since the launch of the police,more overseas investors have participated in A-share trading,further optimizing the investor structure of the mainland capital market.Because information asymmetry is one of the main reasons for enterprises to generate financing constraints,and the participation of foreign investors strengthens the information demand of the mainland capital market,it is of great significance to study the influence of the "Shenzhen-Hong Kong Stock Connect" on enterprises'financing constraints from the perspective of information.From the perspective of the quality of information disclosure,this paper studies the impact of the implementation of the police on the financing constraints of enterprises by using the dual difference model.Based on the data samples of Shenzhen A-share listed companies from 2015 to 2018,this paper constructs the FC index and KV index to measure financing constraints and quality of information disclosure.Combined with the intermediary effect model,this paper testes the intermediary effect of the quality of corporate information disclosure in the process of the"Shenzhen-Hong Kong Stock Connect" affecting the financing constraints.Finally,the sub-sample regression was used to explore how foreign investor participation and corporate size impact the effects of the "Shenzhen-Hong Kong Stock Connect".This article draws the following conclusions:First,after the implementation of the policy,the financing constraints of the target companies were significantly relieved.Second,through the analysis of the intermediary effect,it was found that the implementation of the policy improved the target company's information disclosure quality,and information disclosure quality has played a significant intermediary effect in the process of the policy easing financing constraints.Finally,the sub-sample regression results show that the activeness of foreign investors in participating in transactions and the size of the target company can affect the policy effects on corporate financing constraints.If foreign investors participating in a more active,or the scale is larger,the target company's financing constraints will ease more.This paper believes that the implementation of the "Shenzhen-Hong Kong Stock Connect" will improve the information environment of the mainland capital market and ease corporate's financing constraints.It should further optimize the interconnection mechanism,improve the information disclosure system and improve the investor protection mechanism.