China's Capital Market Development Strategy - From The Perspective Of The State-owned Enterprise Reform Discussion

The present thesis discusses the development and consummation of the capital market in China for the reform of the state-owned enterprises. It analyses the relationship between the development and the reform of the state-owned enterprises in china. My opinion is that both are interdependent as well as interactional each other. So that above both sides must combine to carry through in line. The paper studies the development of the capital market and the reform of the state-owned enterprises respectively in normative and positive aspect. The first, on the basis of analyzing the concept of the capital market, my paper studies the capital market basic function, the relationship of the capital market and economy development, and that of the capital market and the enterprise system, points out that there have been close relation between the capital market and the modem enterprise system: the capital market creates base condition for the expansion of modern enterprise; On the other hand, only the enterprise in which modem enterprise system has been set up could take part in the capital market as independent role in market ,and promote the development of capital market. Secondly, the study introduces the conditions of capital market and enterprise managing structure in the West market economy countries. Because of different developing state of capital market and different history tradition in the West countries, there have been mainly two modes of financing and that of managing structure in enterprises: Japan and Germany mode, that is enterprise抯 financing mainly relies on banks, and the managing structure of that relies on banks also; Britain and America mode, that is enterprise financing and managing mainly relies on securities business. Although above two modes behave merits and demerits respectively, and they show a trend of fusion recently, we still make use of that for reference in our country. Thirdly, the thesis analyzes the capital market function in the reform of state-owned enterprises in the view of normalization. My viewpoint is that there are a lot of questions in our state-owned enterprises, but the key questions are such as: enterprise property right is not clear, managing structure is not perfect, and the distribution of state-owned economy is over scattered, repeated construction is excess, and so on. So that the way of state-owned enterprises?reform is to set up modem enterprise system, adjust whole state-owned economy layout and reorganize the state- owned enterprises strategically. However, the capital market will play a very important role in this process, it will serve as a market mechanism. Fourthly, in fact, the capital market of China is considerably not standard and not perfect, there are many problems with it: the structure of it is irrational, the proportion of indirect financing is overmuch, and the development of direct financing market is insufficient; furthermore the bank in china have not been indeed commercial bank, and in securities business the phenomena of speculation and getting out of line are very universal, the system construction falls behind. In order to change above state and promote the reform of state enterprise, the study presents a series of strategic policy for developing Chinese capital market. Lastly, the paper points out that it is not enough to develop the capital market but not reform th? state-owned enterprises?system of property right and managing structure. Otherwise, the capital market would fail to work well. So that we must propel the reform of state-owned enterprises ,e...