China's Capital Market Standardization

While its achievements over the past ten years has been universally acknowledged, theChinese capital market still presents many problems which, with the issue of "standardization"at the core, severely hinder its further development which can only be brought about when"standardization" is realized and the negative influence of non-market factors eliminated.The problems our capital market meets with include institUtional hindrance and functionaldefects that lead to an over-animated fund-raising and a weakening of the optimization ofresource co1location which in tUrn result in the low efficiency of the operation of our capitalmarket. At the same time, the compulsive instit'Utional change in Chinese caPital market givesbirth to intense conflicts and violent foction betWeen administratively dominated externalinstitution arrangement and the innate law of capital market that render the problems in Chinesecapital market much more complicated than that in mat'Ure market economies.Wth standardization as its central thread, fairness and efficiency as the criterion of itsvalue judgment, this dissertation, which falls into 6 chapters aPart from an Introduction, has itsfocus concentrated upon institUtional constrUction.The first chapter discusses the general theories of capital market and makes a suggestion ofthe demands of the function and standardization of capital market, and the relationship betWeenthe efficiency and standardization of a capital market.The second chaPter stUdies the standardization of the main body's behavior of the capitalmarket and makes an ana1ysis of the characteristics and causes of the non-standardized behaviorof govenunent, enterprises, security dealers and investors.The third chaPter deals with the standardization of the entrance and exit institUtion ofcapital market and pointS out the non-market characters of its operation and its solution.The fourth chaPter treats the standardization of issue and dealing and also points out thenon-market characters of its opndion, its effect, and its solution.The fifth chapter addresses the standardization of information revelation institUtion andproposes compulsive information revelation as a solution.The sixth chapter focuses upon the standardization of the regUlation of capital market andputs forward a tentative plan to perfect the regulation system and institution of our capitalmarket.