Property Rights Trading Market Research

China Equity Exchange Market (EEM), established in the 80's of 20thcentury, is the inevitable production of Chinese market economy reform. After years of exploration and development, the function and status of EEM has been set up definitely. It plays an active role in the reform of state owned enterprises (SOEs) and the optimal allocation of resources, and attracts more and more attention of the society. The 3rd Plenum of 16th CPC Central Committee put forward clearly that"Establish a multi-level capital market system","Regularize and develop property rights transactions","Perfect exchange rules and supervision system, improve the fluent flow of property". During the Fifth session of Tenth NPC and CPPCC held at the beginning of 2007, Premier Wen Jiabao put forward that"We will promote the development of a multi-level system for capital markets and increase the amount and proportion of direct financing". Wen pointed out a direction for EEM. As the base of a multi-level system, EEM is in a booming time, and will play a more important role in the reform of SOEs.Compared with western capital market, China equity exchange and its market is involved more directly and specifically in the markets including economic restructure and adjustment of industries, Mergers and Acquisitions, regulation and reform of SOEs. As a direct property market similar with 2nd board, 3rd board, and 4th board, China EEM is very unique in the world. Even there are still some obstacles; China EEM has set up its new direction through system innovation, found new ways for development.During the short and tortuous history of China EEM, Chinese scholars haven't studied it much, systematic study still remains empty. In recent years, some scholars and professionals in this field engaged the study of EEM, but most of these studies are only based on the intention to preserve and increase the value of state property, emphasizing that the state owned property should be exchanged in EEM, without a systematic overview. This dissertation aims to analyze the history, current situation, evolution of its function and regulations deeply in an all round way, trying to setting up a complete theoretical frame of China's EEM.This dissertation consists of 8 parts, including Introduction, the End and 6 chapters. Introduction explains the meaning of such a subject, the comments on EEM of domestic scholars, and the methods this dissertation takes.Chapter 1 analyzes the property exchange in theory. First, the motivation of enterprises for mergers and property exchange in an economic perspective; next, the general theory of property exchange in the perspectives of modern Transaction Costs theory, property structure theory of Marxism, the Paradox of Equity and Efficiency theory, and Incomplete Contracting theory, so on; finally, the specific theoretical cause of property exchange in a perspective of modern property system and mixed ownership system.Chapter 2 analyzes the current situation and problems of EEM. Here there is a description of the pretty good development of China EEM, including: a booming property market, coordinated local markets newly shaped, more standard exchange, a transparent platform for the effective transaction of state property. Then, a deep analysis of function and system defects of China EEM, an argument that its current positioning is an obstacle to its further development.Chapter 3 analyzes the transaction of property separately from viewpoints of its participators, objects, agents.Chapter 4 analyzes the foundation, development, structure, quotation, Market Maker system of OTCBB (Over the Counter Bulletin Board in American multi-level capital market), argues that OTCBB is a positive reference for China EEM.Chapter 5 analyzes the evolution of general function, reform function, capital market function of EEM, pointing out that it will lead to the multiply-level capital market necessarily with its function evolution.Chapter 6 analyzes the system evolution of China EEM, arguing that its development shows a change from irregular system arrangement to compulsory system, argues that with the development of socialist market system, restructuring EEM will have to experience the Induced Institutional Change resulting from its market orientation.The End points out the direction for China EEM including unification, coordinated property markets, interaction between local markets, market orient, the transfer from government direction to guild guidance; regularization, perfect supervision; standardization, forming a base for a multi-level market, diversification, transaction efficiency.The conclusion and creation of this dissertation as follows:A complete systematic analysis of China EEM includes the analysis of transaction, function evolution, system change, thus, a theoretical and systematic research outline of EEM.In domestic study field, it is the first analysis of the development of China EEM in a perspective of Institution Change Theory of New Institutional Economics. Such an analysis results with a conclusion that, in the process from irregular system to compulsory system of EEM, on one side it gains regularization, and on the other side, compulsory regularization influences efficiency. Therefore, the compulsory system arrangement of EEM must be weakened and diminished. On the contrary, EEM should be subject to Induced Institutional Change theory with market orientation dominated by trade associations.Classification and summarization of the debates over function of EEM within academic circle by the theory of capital function. Through the analysis of mixed ownership system development, the irreversibility of SOEs'reform, the finance of small and medium enterprises, the channel for the withdraw of venture capital, the transfer platform for stocks of Unlisted Company, here describes the function evolution of EEM, and thus reaches to the conclusion that EEM is the base of multi-level capital market essentially.An insight of the operation mode and serious problems of China EEM, especially the withdrawal of state and the participation of private and foreign enterprises as new subjects of property exchange, the value innovation of objects of property exchange, the integration of agents, and some solutions about these problems.In general, through the analysis of China EEM, this dissertation finds out a definite future direction, and provides a theoretical and practical reference for further development of EEM.