China's Stock Market Financing Efficiency Alarmingly Low, Threatening Economic Stability
The article examines how efficiently companies in China's stock market use their own funds for financing. Researchers studied 300 companies listed on the Shanghai and Shenzhen Stock Exchange from 2008 to 2014. They found that the overall financing efficiency of these companies is generally low. Between 2003 and 2005, the total factor productivity in the stock market decreased, but then showed a rapid increase.