Current Core Competencies Trend of Small to Medium Enterprises (SMEs) in China—A Concurrent Comprehensive Evaluation and Active Learning Study of Newly Listed Chinese Stocks from 2015 through 2017

Abstract

With plenty of stocks newly listed in the Chinese stock market everyday, it becomes more and more important for managers and governess to examine the trend of core competencies for these companies. Since most companies of newly listed stocks are small to medium-sized enterprises, existing methods are not capable enough to evaluate their competitiveness. To provide an understanding for the trend of core competencies in the Chinese market, this article conducts a concurrent comprehensive evaluation and active learning methodology to analyze the newly listed stocks in SSE (Shanghai Stock Exchange Composite Index) and SZSE (Shenzhen Stock Exchange Component Index) from 2015 through 2017. There is an evidence that Number of Market Makers, Equity Financing Frequency and Executive Replacement Frequency are three main core competencies from 2015 through 2017. Authors contend that their findings in this paper question the quo of core competencies for small to medium-sized enterprises in the Chinese market.