| The emergence and development of capital markets is an important indicator that the development of modern market economy. Throughout the history of the growth-developed countries, Capital market as the core of the financial support system has played an important role in the enterprise development, science and technology as well as upgrading the economic structure. Capital market provides efficient financing mechanism to modern industry; provide sustained innovation and rapid growth inexhaustible power source. It is an effective protection to achieve long-term economic stability and prosperity. China’s capital market established 90 years in the 20th century,In the 21st century, the world economy presents new trends. The first is product innovation caused by the progress of science and technology system as the core of modern economic development. The second is the financial ability of the competition has become the main manifestations. Country experiences have shown that:Extensive use of independent innovation is the fundamental driving force of industrial upgrading and economic growth. Wealth growth, particularly the continued growth of financial wealth is the fundamental guarantee of industrial upgrading and economic growth. From our situation, both in economies of scale or in the international influence on the economic power, china have entered the ranks of powerful country. To maintain this advantage for long-term, strong capability of independent innovation and modernization of the financial system must be fully integrated, while the core of the modern financial system is sophisticated capital market.In accordance with the basic theory of capital markets, The fundamental purpose of capital markets is to provide financing for the real economy, liquidity, risk, pricing, resource allocation and other aspects of financial services, A mature capital market will give full play to market functions to meet the endowment of diverse participants in different financial needs through the improvement of design of the system. In a long period of time, the State did not actually grasp the actual meaning of the capital market, they worried about the excessive development of capital markets will have a negative impact on the real economy. So it promotes the system more cautious. In fact, form the relationship between virtual economy and real economy, virtual economy is not a vassal of the real economy, although the virtual economy is fundamentally depends on the real economy, but virtual economy itself is not a policy tool. The two should complement each other, harmony together. The current level of development of capital market and macroeconomic does not match, the system should increase the supply of capital markets, expand market reach, increase market efficiency.The overall docking of Capital markets and real economy is the adjustment of industrial structure to solve the main contradiction of the purpose of the course. Article integrated hundreds of companies in Xi’an High-tech Zone of research results and related information of domestic enterprises found:with the adjustment of industrial structure brought about by the optimization and upgrading of enterprises in R & D, business model, marketing model, etc. are constantly trying to bold innovation, and achieved fruitful results. Looking at the country, in the system, technology, philosophy and other aspects of self-innovation has become the countr y’s economic development strategy for the core content. But the current China’s capital market is not supporting the business growth of capital formation and innovative platform for business innovation that did not translate into real economic growth to provide effective financing and incentives.In accordance with the theory of NIE, factors that affect the demand for institutional change can be summarized as elements and products long-term changing in relative prices, technological advances, changing in market size, and changing in preferences. Accordingly, the existing institutional arrangements can not achieve the potential benefits from the following aspects:Firstly, economies of scale are not conformation. Secondly is unable to effectively internalize the externalities. Thirdly, risk aversion is difficult to overcome. Fourth, information is difficult to control cost. According to this analysis paradigm, in this paper, we have a detailed study in institutional arrangement of China’s capital market; attempt to answer the questions above in empirical analysis. The article comprehensive research result of more than 80 companies in Xi’an Hi-tech Park, and found that innovation enterprises have a strong independent on financial support. Mainly in the following factors: firstly, Companies with a strong need for patent protection of innovation. When a factor or product as a result of the scarcity value rises, the owner will have the urgent need to establish property rights system, and capital market asset pricing and protection of property rights is the best place. Secondly, high-tech products need the Long-term stability financial support. The important feature of high-tech products are high breakdown, many products have the limited capacity of market. Technological content of products is inversely proportional to the scale of production, but is proportional to R & D funding. Therefore, high-tech enterprises in the production and management process need a stable financial support. Capital market financing activities in the long term just to meet this requirement. Thirdly, in recent years an increasing number of companies listed overseas, especially by Internet, new energy and the modern service industry. This phenomenon reflects the recognition for emerging corporate and for rational design of the system requirements.The current situations of China’s capital market are:firstly, arrangements for the current capital market system do not effectively solve the problem of uneven distribution of resources. And even to some extent exacerbated by the uneven, increased the difficulty of adjustment of industrial structure, the existing institutional arrangements are difficult to exist in the external capital market into the internal nature. The immediate result is the growth of new industries in the capital markets is difficult to create economies of scale. Secondly, the implementation of China’s capital market system is more cautious in the distribution system, pricing system, information disclosure system and so a higher threshold. On the one hand business approach is difficult, the other they should take the initiative to adapt its characteristics which may be inconsistent with the institutional arrangement. Thirdly, capital markets should be configured in all business activities within society and scattered the risk. China’s capital market has not yet achieved the level of coordination and interaction, higher degree of homogeneity, levels are not clear enough, difficult to realize the risk of discovery and distributed. So it makes difficult to attract hating risk investors to participate. The last, the different levels of capital markets, information and transaction costs have different combinations. In theory, the higher the level of the capital market, the greater the demand for funds subject, the greater the need to provide more information to calculate the probability of profit in order to release risk. Lower levels as the market, the amount of information transactions should also be required to gradually reduce. Within the market at the same level, asymmetric information between enterprises, and the completeness of the information are different. The cost of access to information is a clear difference. So the capital market must have enough information to cost control, this ability rely on the market and the legal system to achieve perfection. And China’s capital market at this point remains to be progress.Business needs and our capital market system highlights the urgent need of change the fact that the capital market.Clear the institution needs, we start to analyze the corresponding institution supply. According to the new system analysis, the main factors affect the supply system including guidelines for the constitutional order, normative behavior, choice set changes the system, the new system design, cost arrangements and the progress of social science knowledge. The improvement of China’s capital market system, you need to select from a centralized system to obtain the necessary reference information. United States, Japan, and Britain’s capital markets experience to make us change our capital market system to reflect all aspects. In the same level of construction in the capital market, the efficiency of capital markets in the United States is the root cause of the new economy, U.S. capital market, the Buttonwood agreement is voluntary, based on bottom-up by the gradual evolution from low to high, Capital markets continue to adjust through the system’s process of economic development to meet the emerging needs, so the system can always maintain a strong innovation capability, the innovative ideas quickly into the real economy growth. British and Japanese capital markets and real economy interaction fully illustrated timely follow-up of capital market system of independent innovation is important to protect the long-term maintenance. Capital market theory and innovation will be a combination of capital market mechanisms grouped into three areas:Capital market is an innovative financing platform for enterprises, capital market resources, gathering places for innovation, capital markets provide incentives for innovative behavior. Theory of institutional economics, demand and institutional supply only system combine to achieve rapid improvement system. The United States, Japan, and Britain’s experience in capital market development is undoubtedly the perfect interpretation of the above.Developed capital markets, the successful experience of building provides us with a mature and efficient capital markets, the general pattern of institutional arrangements, and our capital market system work needs to be based on socio-economic background of China, to find a suitable development path of China’s actual conditions. The basic idea is:to learn the developed capital markets with the inclusive and high-efficiency, highlighting China’s capital markets to resolve the core issue of big but not strong. A multi-level institutional arrangements and a wide range of services model that allows free access to outside companies, enterprises inside the survival of the fittest, by strong institutional innovation, to have different properties traders continued attraction and tolerance for better meet the physical process of economic reform and development rapidly changing financial needs. At the same time, we can not deny the government forces in China’s capital market, an important role in the development process. Consider the legal framework mentioned above, knowledge quality and system cost of implementing combined with th e formation o f historical accumulation of social values, the system of top-down by the government to promote efficiency in China has a huge advantage to Avoid spontaneous evolution of the chaos and path dependence disorder. But in the specific implementation, we want the Government’s role gradually changed by the system, who is security policy-makers. By grasping the strategic direction, strengthen supervision and improve the legal system, etc., to encourage and protect innovation and capital market system. Eventually form a free, stable, fair and efficient institutional environment and as a core build into a strong capital markets, International competitiveness of the modern financial system, eventually China’s economy will be promoted sustained and rapidly. |
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