Operational and investment efficiency of investment trust companies:Do foreign firms outperform domestic firms?

This study examines the efficiency of investment trust companies(ITCs)from 2011 to 2020 using a meta-frontier two-stage network data envelopment analysis(DEA)based on the directional distance function(DDF).We improved the accuracy of the efficiency measurement and added a network-based ranking component to rank the topperforming entities.In the group-specific technology assessment,foreign ITCs excel in investment efficiency.Meanwhile,in the meta-technology assessment,domestic ITCs outperform foreign ITCs in terms of both investment and operational efficiencies.Group-specific technology efficiency scores were found to be lower than or equal to the meta-technology efficiency scores for both the operational and investment stages.Based on the network-based ranking approach,Yuan Ta,a domestic ITC that ranked fourth in the operational stage and first in the investment stage,can be used as a reliable benchmark.This study will enable practitioners to gain a better understanding of the performance of ITCs operating under heterogeneous technologies.

Provisional Regulations for Foreign Businessmen to Run Investment Companies in China

With a view to encouraging foreigninvestors to in vest in China, andimporting overseas advanced technologyand management, expertise, foreigninvestors are permitted to run in vestment-nature companies (hereinafter referred toas investment co.)in China in accordancewith the Chinese related foreigninvestment laws, decrees rules and theRegulations.Article 1 In the Regulations, the investmentco. is that the foreign investors useexclusive capital or joint capital with theChinese investors to run a company inChina engaged in direct in vestment.

The state capital investing and operating company pilot reform and SOE bailouts

This paper explores the influence of the State Capital Investing and Operating Company(SCIOC)pilot reform on SOE bailout using a staggered differencein-differences model.Based on a sample of listed SOEs during 2011-2018,we find that when the real controllers of listed SOEs enter the list of SCIOCs,soft budget constraints are alleviated and listed subsidiaries are less likely to become distressed.Mechanism tests indicate that SCIOCs help distressed firms through exiting the market,reducing bank loans,enhancing corporate governance,and improving operating efficiency.Heterogeneity tests show that the effect of SCIOC establishment is more significant in central and western regions,in public welfare and special function industries,for central SCIOCs,for state capital investing companies,when firms are organized in more layers,and for firms that engage in M&As.The empirical results show that the implementation of SCIOCs benefits both micro-enterprise development and state capital layout optimization.

Best Foot Forward

Chinese shoemaker injects pace intoEthiopia＇s manufacturing sectorDRIVING approximately 30 km out from Bole International Airport in Addis Ababa,the city＇s Eastern Industrial Zone comes into sight.The vast area is home to some 20 Chinese-invested companies,ranging in diversity from shoemaking,textile and garments to automobile,steel,cement and packaging.

Effective M&As to Improve Global Resource Allocation Power

Chinese firms commonly purchased by multinationals a decade ago have now become important participants in global mergers and acquisitions（M＆As）.The last three years have seen a remarkable acceleration toward this.

PRESS REVIEW

The State Investment Company now has a local version. On August r8, Shang Hai began setting up a financial holding company, Shanghai New International Group, which aims to consolidate and streamline government control of Shanghai＇s state-owned financial assets, with Shanghai Pudong Development Bank （SPDB） as its main banking arm. Ji Xiaohui, the former office director of Shanghai＇s financial services bureau,