Development Path Of Mineral Exploration Capital Market In China

Since 2012,due to the world economy slowing down,demand for mineral resources is weakening and the investment of mineral exploration industry is declining.Inevitably,the mining industry has entered a downward cycle.Affected by the global situation,the decline of China's mineral exploration investment is unavoidable.Under such difficult background of mineral exploration industry and to develop the industry,we need to focus on the role of allocation function of the capital market to use the limited capital efficiently.However,since the reform and development,although the domestic capital market has been more fully developed,the establishment and development of mineral exploration capital market has not been given due attention.Lack of mineral exploration capital market has become a bottleneck restricting the development of mineral exploration industry.it is meaningful to study the developing path of the mineral exploration capital market in China under the current difficult economic situation.One of the keys to understand the importance of the mineral capital market is to clarify its importance in the allocation of mineral exploration capital.To this end,this paper firstly adopt Wurgler's(2000)method to evaluate China's capital allocation efficiency of exploration from 2003 to 2012.Furthermore,this paper systematically tests the efficiency of mineral capital allocation of exploration from the region and time dimensions.It is found that the overall capital allocation efficiency of China's mineral exploration is low,and it is showing a declining trend year by year.By analyzing different enterprises,this paper finds that the important reason of the inefficient investment in the mining exploration industry is the overinvestment of government's distorted capital and the underinvestment of private capital.In particular,by studying the effects of regional financial development scale and the development of reginal capital market,this paper finds that financial development and capital market play a key role in improving the efficiency of capital allocation in mineral exploration industry,which provides us a strong positive evidence for developing mineral capital market.Capital allocation efficiency has been proved to be one of the most important factors for economic development.Among many factors that affect the efficiency of capital allocation,the development of capital market is particularly important.Therefore,we should focus on the development of the capital market of mineral exploration in China,and improve the efficiency of capital allocation of mineral exploration effectively,and thus promote the development of the mining industry and the overall economy.Another important content of this paper is to compare the development of mineral exploration capital market in some industrialized countries,and to review and summarize the historical evolution of China's mineral exploration capital market.Based on the analysis above,this paper finally analyzes the obstacles and opportunities faced by China to develop mineral industry,and discusses the development path of the mineral capital market in China.