Research On Impact Of “Shenzhen-Hong Kong Stock Connect” Opening Policy On Investment Efficiency Of Private Enterprises

In recent years,private enterprises have played an indispensable role in stabilizing economic growth,promoting employment,improving people’s livelihood and expanding openness.But for a long time,their weak performance in the financial market and low investment efficiency have become major constraints to their development.In the context of deepening opening to the outside world,China has launched a series of financial liberalization policies in recent years.The “Shenzhen-Hong Kong Stock Connect” is a financial liberalization policy jointly launched by the Hong Kong SAR Government and the Shenzhen Municipal Government,which connects the domestic and international stock markets,opens up access to the domestic market for foreign investors,attracts high-quality capital,and facilitates the development of China’s stock market for resources.This will facilitate the optimal allocation of resources in China’s stock market,which in turn will be transmitted to the development of the real economy and have a significant impact on market participants,i.e.,micro enterprises,in different industries.Therefore,this thesis takes the opportunity of the opening of Shenzhen-Hong Kong Stock Connect to explore how the implementation of the policy of opening up to the outside world affects the investment efficiency of private enterprises.In this thesis we use the exogenous event of “Shenzhen-Hong Kong Stock Connect” and the PSM-DID method to empirically study how the opening policy of “Shenzhen-Hong Kong Stock Connect” affects the investment efficiency of private enterprises.The findings show that: firstly,the opening of Shenzhen-Hong Kong Stock Connect can significantly improve the investment efficiency of private enterprises;secondly,there is a difference in the degree of improvement between underinvestment and overinvestment,and the policy effect of the opening of the Shenzhen-Hong Kong Stock Connect improving underinvestment is better than that of overinvestment;then,the study analyzes the channel of the opening of Shenzhen-Hong Kong Stock Connect on the investment efficiency of private enterprises by mediating the effect of stock liquidity.Finally,heterogeneity analysis is done at the individual,industry competitiveness and marketization levels of private enterprises to explore the degree of impact of the opening of “Shenzhen-Hong Kong Stock Connect”on the investment efficiency of private enterprises.The improvement effect of inefficient investment is more obvious for private enterprises in high financing constraints,high R&D innovation investment,high industry competitiveness and regions with high marketization level.Based on the above findings,this thesis proposes relevant policy recommendations for stock market regulators,private enterprises themselves,and investors.“Shenzhen Hong Kong Stock Connect” opening policy,as an important measure to connect China’s A-share market with the international stock market,marks the further opening of China’s stock market.The study of the effectiveness of “Shenzhen Hong Kong Stock Connect” opening policy in this thesis is helpful for the long-term stable development of private enterprises,aligns with financial service entities,and conforms to the trend of comprehensive opening up to the outside world.