The Growth Of Securities Markets In Transition Economies And Institutional Change

After some firms began to issue stocks in the early 1980s, Chinese Securities Market has been more than twenty years from its sprouting and birth, until early growth, and Shanghai and Shenzhen Securities Exchanges are also been more than ten years old. Undoubtedly, Chinese Securities Market has got a great achievement in the past; especially the number of listing companies is almost ahead of the international large securities markets and the scale is not less than them.Till now, judging from the intuition on the fact, Chinese Securities Market grows to a certain scale, but the market efficiency is still very low. So we can describe the market building activities as "so large achievement, and so many problems". Because China is a transition country, and now all about the economy, the society, the politics and the culture are in a dynamic evolutionary process. As an emerging market, there are so many factors that restrain its maturing and some institutional flaws and deep-seated contradiction emerged and became so serious when it grew up. Therefore, Chinese Securities Market works far from the theoretical functions of securities market, and now many people began to pay more attention to the problem of market efficiency gradually. To make the market mature and get internationalization, a new institutional innovation is needed urgently. However, all these problems, such as where is the breakthrough of the innovation, how we can improve the perfectness of the market institution, which path Chinese Securities Market should follow, and so on, are urgent and very important.Rooted in the reality of this country, the systematical studies on Chinese Securities Market maturing are too few and many of them are concentrating on the shallow pattern of "problem-countermeasure". The foreign researchers' studies were building on the developed securities markets, so they had little effect on explaining the emerging market like China and the practice-directing power are more limited. This paper deals with the problem of Chinese Securities Market institutional evolution and path-selection, concentrating on the general rules of securities market...