Abstract
Socialist market economy is not the same as western market economy. Market Socialism as it is practiced in China means that things like investor activism may be changed to such a degree that they cannot really be equated with their so-called equivalents in the west. This is perhaps because there is a very different view of the rule of law and the operations of the market in China, where there is the phenomenon of Qualified Foreign Institutional Investors (QFIIs). In the circumstances of socialist market economy in China, the question is whether this QFIIs phenomenon can really be viable to proceed all that far when there are simply not the flows of information, and the manner of holding companies to account, or trying to influence them, which there are in the US or the EU (particularly in the UK).
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Notes
- 1.
In two recent dramatic falls in China A-shares on 24 June 2013 and 26 June 2015, QFIIs’ behaviour as momentum shifts in the market is a possible factor.
- 2.
Symbolic targeting refers to institutional investors who announce a list of targeted shares, indicating their intention to purchase.
References
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Wang, W. (2019). Description of the Research. In: Institutional Activism in Corporate Governance. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-19577-9_1
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DOI: https://doi.org/10.1007/978-3-030-19577-9_1
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