The Study Of The Chinese Stock Market Risk And Its Prevention

Current achievements in research on the stock market risk and itsprotection mainly focus their attentions upon the problems from themicro-individual and investors' perspectives, while systemic andmacro-level study is really rare. The development course of more than tenyears of China's stock market indicates that it is a quite special emergingmarket under the circumstances of the transition economy. It originatesand develops during the process of carrying on the reform in economicsystem with a publicly-owned property right foundation, thus its functionas well as the governance framework has an obvious route dependencecharacter. During the process of studying the risk of Chinese stock market andits protection, the paper is established in its dissimilation andspecification together with the domestic and international researchachievements, using new classical economics, new institution economics,transaction cost economics, information economics and law economicstheories. It concludes that the main risk exhibitions of China's stockmarket are functional risk, governance risk and contrived manipulate risk.These risks, alike that of the mature stock markets, are very harmful tothe market operation and macroeconomic development. It is on such ananalysis that the author bases to bring forward his basic ideas about howto protect the risk of China's stock market. The thesis consists of eight chapters excluding the introduction part.In the introduction part I discuss the value of the research, basichypotheses, research methods, the framework of the paper and its mainpoints. In chapter 1 I provide a systemic, comprehensive and critical reviewof the documents relative to the stock market risks and its protection.Thus the necessity of studying the special risks of China's stock marketform the systemic and macro-level is raised. In chapter 2 I probe into the general theory about the stock market 3risk and regard these theories as the guideline of studying the risk ofChina's stock market and its protection. I also summarize the concept ofthe stock market risk, its origin cause and evaluation so that the definitionof the stock market risk from the author's perspective could be derived. In Chapter 3, The profound contradiction beneath the risk of China'sstock market has been analyzed. As a result, a research platform thatcould better understand the characteristics of China's stock market risk isestablished. I also study in this chapter the sources and the basicperformance of the risks during the government-led institutiontransforming process. In Chapter 4 I analyze the leading status of the state-ownedenterprise on China's stock market, Study the functional stock market riskbrought forward by such leading status and coherence behaviors on themarket, and point out that state-owed listed company, as the stock marketmain body, has generally regarded China's stock market as the financingplace and ignored its other functions. In Chapter 5 I analyze the dual-function taken by ChineseGovernment both as a social economic administrator managing nationaleconomy and as property principal managing state assets, pointing outthat because government lay particular stress on economic functions andits drawbacks in supervision and controlling the stock market, governancerisk has occurred. In Chapter 6 I discuss the mal-structure and asymmetric informationproblems in China's stock market, arguing that contrived manipulate riskwould occur because of lacking effective restriction towards thespeculation behaviors of the market participants. In Chapter 7, through the retrospect of the risk sequence in bothmature stock markets and China's stock market, I point out that risks inthe stock market have enormous harmfulness to the economicdevelopment, stock markets' operation and the investor's confidence ofthe macro-economy. So protection against stock market risks will be...