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Non-circulating equity and excessive equity financing


In the Chinese stock market, the price of exchangeable stock is determined by the discounted future uncertain cash flow, while the price of non-circulating stock depends on per book value. In general, because investors holding non-circulating equity maintain the control power, corporate finance and investment decisions reflect their interests. The pricing mechanism of non-circulating stock violates the basic pricing principle of the capital market. Therefore, corporate finance decisions deviate from the NPV (net present value). As a result, excessive equity financing problems would occur in the listed companies.


中国股市中, 流通股的价格取决于公司未来不确定现金流期望值的折现: 非流通股的价格则依据每股净资产来制订。 通常非流通股股东拥有公司的控制权, 因此公司的投融资决策体现了非流通股股东的利益。 非流通股的定价制度有违资本市场对资产定价的基本原理, 所以公司的投融资决策也偏离了公司财务理论所确定的净现值标准, 导致上市公司存在过度股权融资问题。


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Correspondence to Zheng Zuxuan.

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Translated from Shijie Jingji Wenyuan 世界经济文源 (World Economic Forum), 2004, (4): 41–50

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Zheng, Z., Zhou, Y., Li, D. et al. Non-circulating equity and excessive equity financing. Front. Bus. Res. China 1, 422–436 (2007).

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  • non-circulating equity
  • excessive equity financing
  • net present value
  • Chinese stock market


  • 非流通股
  • 过度股权融资
  • 净现值
  • 中国股市