文档介绍：ProfitabilityofChinese panies 1 Project executives Dong Tao Wu Boling Shi Zhengfu Project coordinator Lu Wenying Project Members Credit Suisse First Boston Dong Tao Sheila Yip Fudan University Wu Boling Shi Zhengfu Yang Mingqiu Dong Honglei Abstract The aim of this project is to look into the profitability of A-shares, B-shares, H-shares and Red Chips in the period of 1995~2001. We chose return on equity e margin as proxies for profitability. pare the results from Chinese panies with those from the US, Europe and Japan. Further, we broke down the data into various categories, in an attempt to capture the core and developing trends of listed panies. In general, we found the profitability of Chinese panies was not that much lower compared to its international peers. The A-shares seem to have better margins than Hong Kong panies. However, there seems to be an alarming trend of decline in ROE amongst the A-shares, and to some extent the B-shares as well. This reflects the view that Chinese executives are not managing their equity bases well after proceeds are raised. Typically, Chinese executives want to hold on to as much equity as possible and sometimes tend to spread their resources beyond the core businesses of their panies without proper returns, lowering the efficiency of shareholders’ capital. e margins of the panies are substantially higher than their international counterparts, but the ratios have been on the decline, in a similar vein to the ROE ratios. This is most evident in the manufacturing and consumer product sectors. The Chinese utility companies have the steadiest margins amongst the panies and their profitability is significantly better than those in the rest of the world. There is no clear evidence that Hong Kong listed panies are afflicted by declining margins like the mainland listed ones, despite having grappled with severe cyclical pain caused by the Asian Financial Crisis. Margins of China panies tend to fall once the listing p