Structure And Change Of China's Stock Market

As the first year of the new century, 2001 is doomed to be a vital year in the evolutionary progress of Chinese stock market. Marked by the out-come of the plan of decreasing the percentage of state-owned shares, the development of Chinese stock market will enter a brand-new stage. From a historical point of view, after a twenty-yearlong development, a fairly complete and Chinese-characteristic system has been settled down in Chinese stock market. And from now on, more emphasis will be laid upon changing the reform mode of the stock market from the expanding-style (i.e. the increment-sectors reform) to the deepening-style (i.e. the stock-sectors reform). At the cross point of the change, a retrospect and summarization of the twenty-year-long progress of Chinese stock market will be necessary and meaningful. Based on the analysis of both the structure of the stock market and its evolution, this dissertation has a thorough retrospect of the development of Chinese stock market and reveals the characteristics of the present market and its developing tendencies. It further investigates the future development of the market and the relationship between the market development and the reform and evolution of the macro-economy.The structure of this dissertation is as follows:Chapter 1. The author takes a retrospect upon the institution-based analyzing diagram, including the so-called old-institutionalism and new-institutionalism, which is the theoretical base of the whole dissertation. Then he takes a retrospect of the application of this diagram in Chinese economic reform, which is called transitional economics. And last, the author analyzes two fundamental concepts in this field, i.e. the increment-sectors reform and the stock-sectors reform, and shows the relationship between them and their own importance in the transitional economy.Chapter 2. The author takes a retrospect of the evolutionary progress of Chinese financing system, investigates the different roles Chinese stock market played in history, and presents a whole portrait of the market structure. By means of a three-stage-hypothesis, he gives an illustration that the development of the social financing system is accompanied with the change of the role of stock market, which is further the basis of the development of stock market structure. It is a progressive macro-to-micro analysis.Chapter 3. The author has a discussion about the increment-sectors reform. In this chapter, the division between the increment-sectors and the stock-sectors is regarded as the basis to distinguish different development periods of the market and different measures taken. The discussion is carried out in the following sequence, i.e. from the narrow meaning of the market structure (serial structure)梩o the wide meaning of themarket structure (including the structure of investors, the structure of the market intermediary, the corporate governance system, and the regulation system).Chapter 4. The author discusses the stock-sector reform. Based on the understanding of the progressive reform and institution change, he considers the present stage as transitional period, i.e. from the former increment-sectors period to the latter stock-sectors period. At this stage, the two means of reform are of the same importance to the market. The discussion of this chapter includes the circulation of state-owned shares, the combination of Share A and Share B, the asset restructuring of public-listed corporations, the restructuring of the securities intermediary, and the improvement of the regulating system.Chapter 5. The author takes a wider view-scope to analyze the stock market's development and change under the overall economic reform progress, and tries to make this research meaningful in more economic fields and of deeper theoretical implications.Chapter 6. The author expresses his views on some currently argumentative topics, such as regulation and development of Chinese stock market.