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Abstract
Using a large sample of China’s listed firms between 2005 and 2015, we find that domestic mutual funds have a positive effect on the CEO pay-performance relationship, and this effect becomes stronger when their ownership is higher and closer to the controlling shareholder’s ownership. This effect is stronger in non-state-owned enterprises (non-SOEs), firms facing weaker industry competition incentives, and firms located in more developed regions. However, Qualified Foreign Institutional Investors (QFIIs) do not have such an influence. Overall, our study contends that the effectiveness of institutional investors’ monitoring role is subject to their identity, controlling shareholders and institutional environments.
Greenberg Traurig's China Newsletter update for winter 2021 covering QFII and RQFII provisions, QFII/RQFII Rules, Foreign Direct Investment, Drug Registration administrative measures, MAH systems and more.
By Addison Gong
01 Feb 2021
In this round-up, China’s official and the Caixin manufacturing Purchasing Managers’ Indexes fall amid a resurgence of local Covid-19 infections, creditors demand a bankruptcy reorganisation of beleaguered conglomerate HNA Group, and Xiaomi Corp files a lawsuit against the US’s decision to add it to a list of Chinese companies with alleged military ties.
China’s official January manufacturing Purchasing Managers’ Index (PMI) came at 51.3, down from December’s 51.9, with non-manufacturing PMI dropping to 52.4 from 55.7 the previous month, latest data from the National Bureau of Statistics showed.
The official manufacturing PMI reading reached a three-year peak of 52.1 in November 2020.
Craig McLeod January 25, 2021 09:36
Tectonic shifts in technology and the transformation of global finance over the past two decades have dramatically changed the way investors trade bonds. Nowhere is this more evident than in the opening up of mainland China’s bond market.
The gradual transformation of China’s $15 trillion debt market offers one of the best examples of how an individual economy can take advantage of recent advances in financial services. Just five years ago, only a very limited number of foreign institutional investors were able to invest in China’s onshore bond market. But thanks to regulators’ efforts in lowering barriers and to developments in electronic trading, overseas ownership of Chinese credit is now at a record high. During the same period the Chinese bond market has grown into the world’s second largest, behind only the U.S.