China's Securities Market Level Differentiation

China's securities market start from scratch, from small to larger, has developed for nearly 20 years. As a result, the scale of market has been expanded. By the end of November 2002, the total market value of Shanghai and Shenzhen Securities Exchange is 4034.6 billion yuan; the amount of listed company is 1218. However, the efficient of securities market has still not been much improved. The effective and multi-levels market system has not been formed. On the base of the development experience of America's securities market, this article discussed the theoretical reason of the levelization of securities market and put forward a working procedure of creating a multi-levels securities market system.First, this article introduced the levels of securities market and its developed, American securities market is a good point example. As the difference of the market participants' demand, the levelization of securities market is necessary. In a multi-levels market system, there has international, national, district and local market level etc. Secondly, we summarized the theoretical reason of the levelization of securities market and considered that market competition & imperfect information are the reasons of securities market levelization. Thirdly, from the practice of the development of China's securities market, we analyzed the market demand and institution demand of the multi-levels securities market system. What's more, we put forward the basic frame of multi-levels market system. Finally, we set forth the role of government during the course of levelization of securities market. Draw on the history experience of American government action. This article could give theoretical guide of Chinese government action, especially in the market supervision and management.As the above-mentioned analysis, the writer concluded: As a new and developing securities market, furthermore, in a developing market economic environment. In order to creating China's multi-levels securities market system, we should put market mechanism in a primary position and put government intervene in a supplement position. Bring market competition mechanism into full play, we can realized the multi-levels market system by the competition of different market participant and different level market. Government should only keep the order of market competition, protect the interest of investor, supervise the accuracy and abundant of information disclosure, instead of excessive intervene the market action...