Study On Problems And Countermeasures Of Rent-seeking On China's Security Market

The Chinese security market gained its shape in the transformation from the Central Planned Economy to the Market-oriented Economy. For the passed several years it has made great progress in the economic reform and has become part of our life. However, its development was closely related to the interference from the government, and considerable rent has been created as a result of the government's improper interference and the dissymmetry of information. Also the rent-seeking by relative principals has generated disadvantages for the market.For the healthy growth of the security market as well as the national economy, institution renovation will be a resort. Since the economic reform takes a long time, the countermeasures for rent-seeking is in bad need.Based on the rent-seeking theory and theory of relation between government and market, the thesis studies the rent-seeking activities, their macroscopical and microcosmic backgrounds, the rent-creating mechanism, and the performance by the principals of security offering, agency, investing, and government, then analyzed their origin and influence and concluded the countermeasures.The framework of this thesis is as follows: Chapter 1 is the pandect, mainly about the issues, the train of thought, the hypothesis, and the methodology; Chapter 2 is the academic groundwork, introducing the theories on rent-seeking, the development of relation between government and market, and security market; Chapter 3 studies the macroscopical and microcosmie backgrounds of the rent-seeking activities in Chinese security market; Chapter 4 studies the rent-creating mechanism, which premise the activities; Chapter 5 analyzes the performance and characteristics of the activities.; Chapter 6 studies the origin and influence of the rent-seeking activities, probes into their deep roots, and reveals the harms from the activities through investigation in the resource lavishment and impact on the security market and the whole society, which come in the wake of rent-seeking; Chapter 7 gives the conclusions and countermeasures.Depending on positive and inductive research, this thesis concludes as follows: l.the rent-seeking issue of Chinese security market runs through the reform process of our economic regime, which, together with our opening to the world, constitutes the macroscopical economic background, of which the rapid growth of our security market and the emergence of private economy is also a part. The state enterprises' transformation to joint stock system, the basic assumption of "economic man", and so on constitutes the microcosmic background for Chinese security market. 2.the interference from government in economy is the root of rent. The unmeant,passive, and initiative creations of rent by government build up the generating mechanism of rent. In Chinese security market, the improper interference from government produces safeguarding rent, the two track market generates dual rent, and the dissymmetry of information leads to information rent. These make up the rent-creating mechanism in Chinese security market.3.most rent-seekers are the principals of security offering, agency, investing, and government, and they differ in measures, objects, and traits. Their objects include dual rent, safeguarding rent, and part of information rent. Some illegal activities have been conducted. Some quoted companies seek information rent by stable push. The security agencies which are the source of information rent by counterfeiting account, report forms, investing certificates and evaluating certificates. Besides, some even cook up and diffuse mendacious information to manipulate the stock price. For those investing principals, information rent-seeking is the central part of private investors' activities. The organization investors primarily seek safeguarding rent and information rent, and in this process the private investors usually suffer. The government's rent-seeking is conducted by the officials who own small amount of ideological capital and decide whether a stock goes...