Study On Security Market Troubles And Countermeasures In The Period Of The Non-tradable Shares Reform

Chinese Security Market derived from the background of the transformation of Chinese economy from planned economic system to market economic system. Its birth and growth are the internal requirement of economic reform, and have the meaning as forerunner in Chinese economic market transition.The A-share index of China stock market dropped over 50 percent from 2245 points in June 2001 to 998 points in June 2005. Not only share index and large amounts of money, but also fairness and development opportunity were lost in the market, and as well, investors' confidence. It has become a common topic on when share market can find its way out of the trouble.The author holds the view that the past ten years' development course of China security market has indicated that the Security Decision-making Department had made some strategic errors and decision-making defects.Currently, China shares reform is under performance, which will cause a complete and fundamental reform in Chinese capital market. The success and failure of this reform will get a great influence on millions of investors and the people's lives. Its significance will surpass the capital market itself, and spread to the entire financial field. Therefore, compared to other departments, the management and decision-making of Security departments are more importance as closely related to the entire financial system frame and social stability.