Analysis To Structrue And Efficiency Of China's Stock Market

In its over 10 years history, China's stock market has experienced pains with Chinese features besides that of developing market. A completely analysis just by applying general economic principles to such a problem is not sufficient. It must consider the bringing, and evolvement of China's stock market.As the processing of market-oriented reform, there are some problems in the field of state-owned economy, such as the high ratio of debts and low efficiency of the state-owned business, the huge amount of bad loans and credit crisis of the state-ovvned bank. It is in such economic environment that China stock market has come into being by promoting of Chinese government. People hope it can meet the financial demands of the state-run business, shoulder the great financial risks of the state-run bank as well as allocate the resources properly and promote the transfer of enterprises' operating system. Unfortunately, from the consequence, it can teli that at the very beginning the administration stuff of government was not so clear about role of stock market in China's economy. The market ultimately became a place where different benefit group gamble. The financial risks of Chinese financial system have not been separated, but magnified and transferred to the stock market.The paper is attempt to discuss the above issues. Firstly, we apply economic principles to analyses the structure and efficiency of stock market, conclude the ideal market structure and its top efficiency梕quilibrium efficiency, then, according to the theory of unsymmetyical information, point out that perfect competition market doesn't exist in reality. Every market has its own characteristics and stock market cannot fulfill the tasks that Chinese government endovved to China's stock market.Secondly, by analyzing current China's stock market, it conclude that in spite of above mentioned tasks, the market failed to achieve normal function of commonly stock market because the foundation of the market was weak in addition to the problems deep inside the economy system. China's stock market ultimately became a "Grant Casino", as the famous economist said.Finally, we give some advices in allusion to above discussed system construction.