There are six authoritative industry classification standards at home and abroad. Generally speaking, these six classification standards can be divided into two types: management type and investment type. United Nations International Standard Industrial Classification (ISIC), North American Industrial Classification System (NAICS) and National Bureau of Statistics are typical management standards, while North American Industrial Classification System (Global Industry Classification Stan? Dard and FTSE jointly published by Morgan Stanley and StanDard & Poor's Company (GICS) are investment-oriented. Although the guidelines of China Securities Regulatory Commission are aimed at the industry classification of listed companies, they are still government-managed because they are based on the classification standards of the National Bureau of Statistics and refer to the main management-oriented classification standards abroad. Shanghai Stock Exchange 180 Index adopts investment-oriented GICS as the industry classification standard.
Two, the comparison of management and investment classification standards.
Qualitative comparison and analysis of 1 and classification standard
The purpose of classification management classification standards is to reflect the internal structure and development of the national economy, while GICS and FTSE clearly put forward the purpose of classification to serve investors' investment analysis, performance evaluation, asset allocation or index tracking funds, and apply it to the derivative activities of banks or securities firms.
The principle of industry classification is that the former is product-oriented and the latter is product-oriented and classified according to the market demand of consumers. Therefore, the structures and levels of the two classifications are very different. The two classification standards are still based on the homogeneity of products in the division of fine categories, but there are great differences in the division, content and structure of large categories. Management type is basically classified from the standpoint of producers. Investment types consider the recognition of industry investment value, and shift from the position of producers to the position of consumers. From the structural point of view, the management type is basically based on the division of three types of industries, while the investment type is mainly based on consumption characteristics, which downplays the difference between goods and services and the concepts of three types of industries.
In the number of classifications, the former is also much more detailed than the latter. For example, GICS has only 123 sub-industry, while NAICS has165,438+070 sub-industry, and the National Bureau of Statistics has 9 13 sub-industry. From the management point of view, detailed classification is beneficial to statistics and management, because the object of classification is hundreds of thousands of industrial activity units; However, from the investment point of view, too fine classification will lead to too few companies in the industry, too sensitive to the fluctuation of economic situation and different businesses of a single company, the company's sub-industry ownership is changeable, the industry lacks stability, and at the same time increase the use cost and complexity of investors.
Classification object management is to classify all profit-making or non-profit industrial activity units, while investment only classifies listed companies, which are profit-making business activity units, and administrative institutions, social organizations, various organizations and associations do not belong to their classification objects. Management classification mainly focuses on the macro industry aggregate, which is calculated by splitting the output value and profit of companies operating in different industries. Investment classification focuses on the investment value of a single company. Since securities are issued by each company as a whole, investment classification takes each listed company as a whole when calculating. Therefore, in comparison, the industries classified according to management standards are relatively simple, including the output results of various departments in this industry; Investment-oriented classified industries are a collection of companies mainly engaged in this industry, and companies in this industry may also engage in activities in other fields, so their industry concepts are not single.
The management types of company ownership law are basically divided according to the output characteristics, mainly examining its main income; While considering the income factor, the investment type also considers the characteristics of its profit source, which embodies its purpose of serving investors, because the investment value of listed companies ultimately depends on their ability to create profits for shareholders.
2. Statistical comparison between the criteria of China Securities Regulatory Commission and GICS classification standards.
Compared with GICS, the guidelines of China Securities Regulatory Commission belong to management category, while the latter belongs to investment category. In order to find out the similarities and differences between the two classification methods, we make a circular comparison to see that they have the same classification at all levels, and give a general explanation of the overall classification similarity.
Because there are significant differences between them in many aspects of classification, they also show great differences in statistical results. Excluding the duplication in statistics, about 6 1% of the first-level classification of China Securities Regulatory Commission, about 42% of the second-level classification of China Securities Regulatory Commission and only about 1 1% of the third-level classification of China Securities Regulatory Commission can be found in GICS. Therefore, on the whole, the classification methods of China Securities Regulatory Commission and GICS are quite different. Third, the differences between GICS and FTSE investment industry classification standards.
1, the specific classification method is different. When classifying companies by industry, GICS considers income first, followed by profit. The first reason is that income fluctuation is less than profit, which can more accurately reflect the company's activities; Second, most companies provide industry and region breakdown data of income, but many companies do not provide industry and region breakdown data of profit. However, because the relationship between company value and profit is closer, profit is still an important factor to be considered. FTSE mainly considers the proportion of pre-tax profits of various businesses to total profits, regardless of the company's income. From the perspective of investability, it is more scientific to balance income and profit.
2. There are differences in classification principles. GICS pays more attention to the market demand and consumption characteristics of products, while FTSE still pays more attention to the economic nature or production process of products than GICS, although it has undergone qualitative changes with management classification. It should be said that focusing on the market demand of products can better reflect the investment value of the company in modern society.
3. Different judgments on investment opportunities in the industry FTSE looks at the industry from a static perspective, so it pays great attention to the sensitivity of the industry to the economic cycle. This is because if the industry is very stable, its investment opportunities only lie in the cyclical industry growth and recession with economic fluctuations. GICS looks at the industry from the perspective of development and thinks that the investment value of the industry lies in its future development prospects. It should be said that paying attention to the development prospects of the industry is more in line with the needs of modern investment. With the rapid development of science and technology and the emergence and growth of emerging industries, the investment value of some emerging industries is getting higher and higher. Therefore, paying attention to the development prospects of emerging industries is more conducive to judging the investment value of industries than paying attention to the sensitivity of economic cycles.
4. There are different levels of classification standards. GICS is a four-level classification and FTSE is a three-level classification. The increase of classification level is suitable for classifying a large number of listed companies (such as tens of thousands of companies around the world) at the same time, but it will also increase the cost and complexity of use. A slightly simpler classification level is suitable for classifying listed companies in a single country.
Determination of Classification Standards for Investment Industries in China
1.GICS can be used as the basic basis for the classification standard of investment-oriented industries in China.
Based on the above factors, among the existing authoritative classification standards for investment-oriented industries, we think GICS is the most suitable basis for the classification standards for investment-oriented industries in China:
1. When classifying companies by industry, among the two factors, income and profit, income is more suitable for the national conditions of China. Many domestic listed companies lose money in their main business, and if they only consider profits, they can easily be classified as non-main business.
2. The adoption of GICS is the need for China's investment industry to connect with the international market and attract foreign investment. The National Bureau of Statistics' national economic industry classification standard is formulated according to the United Nations International Standard Industrial Classification (ISIC).
3.GICS is more suitable for the needs of modern investment analysis and can better reflect the latest characteristics of economic development. For example, pay attention to the consumption characteristics and market demand of the industry, and do not distinguish between goods and services.
4.GICS reflects the future development trend of China's industrial structure to some extent, such as the rapid expansion of service industry and information industry. Therefore, the adoption of GICS is forward-looking and does not need to be adjusted frequently in a period of time, which is conducive to guiding the industrial development direction of China and the investment concept of the securities market.
Secondly, an empirical study on the classification of listed companies in China based on GICS.
1, select the standards and indicators to judge the pros and cons of industry classification methods.
The measure of an investment-oriented industry classification standard is whether it can successfully distinguish different investment values of different industries, or whether it can classify listed companies with similar investment values in the same industry into one category and classify listed companies with different investment values in different industries into different categories. For the performance of the investment value of listed companies, we think the most important performance indicator is the return on net assets. As for other characteristic indexes of stock investment, such as P/E ratio and turnover rate, it reflects the subjective evaluation of the investment value of listed companies at a certain point. Therefore, in the empirical study, we choose the return on net assets as the primary evaluation index, but in order to examine the market's recognition of industry classification standards and confirm the practicability of industry classification standards from the side, we also choose the price-earnings ratio to make statistical analysis of listed companies after classification.
2. Research methods, data sources and sample description.
We classified the listed companies in Shanghai and Shenzhen stock markets according to GICS and China Securities Regulatory Commission Guidelines respectively, and made a statistical analysis of the average return on equity of listed companies in various industries after classification by using one-way ANOVA, excluding companies with absolute return on equity greater than 100%. In the statistical analysis of P/E ratio, companies with P/E ratio greater than 300 and P/E ratio less than 0 are excluded.
3. Results and analysis
The statistical results show that according to the classification method in the Guidelines, there is no significant difference in the average return on equity of listed companies in various industries (f =1.539; p = 0. 104 > 0.05)； According to GICS classification, the average return on equity of listed companies varies significantly among industries (f = 2.354p = 0.0120.05). According to the GICS classification method, there is no significant difference in the average P/E ratio of listed companies (f =1.648; P=0.098>0.05). However, according to the actual situation of China stock market, we relaxed the significance level to 0. 10. When the significance level is 0. 10, there is no significant difference in the average P/E ratio of listed companies calculated according to the guidelines (f =1.261; p = 0.237 > 0. 10)； According to GICS classification, the average P/E ratio of listed companies varies significantly among industries (f =1.648; p=0.098