Transition Function Of The Capital Markets Research

China's capital market has made great achievements through more than ten years of development, but since the first year of 21st century stock market in China has been sluggish. The standard and development of stock market are puzzled by some deep questions. Although there are some achievements in research of capital market, most of them are not about whole and macro questions but partial and micro questions. This dissertation tries to research capital market from the angle of function. Functional Perspective has been put forward by Robat C. Merton, an American economist and winner of Nobel Prize, who researched global financial system with it instead of Organizational Perspective. This study comprises two parts and six chapters. The first part lays particular emphasis on research of theory. It tells about "what a perfect capital market is". This part includes the first and the second chapters. The second part, including four chapters, analyses present situation, problems, obstacles of system and countermeasures of China's capital market. In the first part, I bring forward "functional method" in the research of capital market, especially in developing countries on the basis of evaluating value theory of Marxism economics and western economics. "Functional method", being deferent from traditional "organizational method", is a method of system analysis on the one hand and a model of "function-structure in sociology on the other hand. It is pointed out in the dissertation that "functional method" can not only consider wholly and gently how to standardize and develop Chinese capital market, but also correct long misunderstanding of functional perspective. I want to build a new frame for analyzing capital market. Next, the dissertation makes an all-round research on the "functional method". This study defines capital market as circulating of long-term fund, so it includes stock, bond and financial derivative. Accompanied by the development of finance, the function of capital market is gradually formed, and it will show a dynamic process. In the view of disposition of resource, the fundamental function of capital market is transferring resource, dividing money, risk management, price signal and incentive mechanism. Then I study the form, mechanism and demand of accomplishing these functions. In developing countries, including China, obstacle to carrying out the capital market's function is that frequently the market mechanism itself is not perfect. A perfect capital market is mobile, fair, safe and transparent. In the second part, this dissertation firstly locates and empirically analyses the function of Chinese capital market. The development of Chinese capital market is special, because the forming of capital market is accompanied by the development of market economic system. While Chinese market will have to work under the laws governing the capital market, it will also show its Chinese characteristics. Apart from the five basic functions of general capital market, Chinese capital market performs an additional function of system reform. In empirical analysis, by examining functions from quality and quantity of resource disposition and structural reforms, this study draws a conclusion that now functional efficiency of Chinese capital market is low and there is low quality in the disposition of resource. Then, by investigating the history of Chinese capital market development, I find that a misunderstanding of functional perspective is the historical reasons for low functional efficiency of Chinese capital market. It is brought about by the restriction of political ideas and over-intervention of administration. Then I expound development modes of Chinese capital market in the future. Chapter four and chapter five are the cores of this dissertation. The fourth Chapter reveals the inherent system reason for bringing about low functional efficiency of Chinese capital market. Proceeding from fundamental mechanism — the relation between demand and supply in capital market, this dissertation works out a rela...