Research on the Influencing Factors of China’s Investment in Overseas Mineral Exploration Listed Companies


Supervisor:zhao peng da


Degree Year:2019





The security of mineral resources is the foundation of national economic development.With the rapid economic development,China’s external dependence on mineral products is constantly increasing.Accelerating the exploitation and utilization of overseas mineral resources has become an important strategic choice for China.However,China’s OFDI into the mineral resources industry is declining in recent years and the investment failure rate is significantly higher than other industries’.This paper is entitled “Research on the influencing factors of China’s investment in overseas mineral exploration listed companies”,analyzing the influencing factors of China’s investment in overseas mineral resources and exploring the ways to success.On the basis of analyzing and studying a large number of literature and published information of overseas mineral exploration listed companies,56 influencing factors of China’s investment in overseas mineral exploration listed companies were identified in three categories.According to the characteristics of mineral exploration company,this paper first defines 8 financial analysis ratios of listed mineral exploration companies.An empirical study was conducted on 110 companies listed on the Toronto stock exchange Venture.Binary logistic regression was used.More than 10,000 pieces of data collected by hand were analyzed and sorted out.Passed two rounds of more than 50 tests,a screening model of China’s investment in overseas mineral exploration listed companies composed of 15 key influencing factors is constructed.Based on this screening model,a screening method for China’s investment in overseas mineral exploration listed companies is conducted according to the self-created framework diagram of influencing factors in three categories(ordered as management,project,financial).In the process of China’s investment in the overseas mineral resources,lack of understanding of the political and economic situation,misunderstanding of policies and laws,neglect of labor,community,environmental protection,religion and indigenous issues are big problems.Several suggestions are provided: first,aim at new target--invest in overseas mineral exploration companies;second,take a new approach--invest in overseas stock markets;third,achieve rapid appreciation of investment.This paper is also intended to detailed introduce the special Canadian preferential personal income tax policy,Flow-Through Shares,and its supporting tax policy,Mineral Exploration Tax Credit,which are successful directed the personal capital into mining exploration industry;analyzed the eligibility rules and procedural provisions of all the current incentive financial projects of Canadian local governments for mineral exploration companies.The results of these study can enlighten the development of incentive policies for the China’s mineral exploration industry.The research direction of this paper is of practical and long-term significance to China’s utilization of foreign mineral resources and security of mineral resources through investment.A more systematic and in-depth study needs to be carried out comprehensively.