On China's Capital Market Structure Optimization

Capital market plays a very important role in accumulating funds and allocating resource. With the combination of capital, labor, management and technology, can we have the real production. New labors need new capital; technology innovation needs new capital. All of them and economy structure adjustment are completed in capital market. The capital market is the brain of economy. In capital market capital price is also the most important information. With the waving of price ,capital market indexes the flowing of resource. The capital market is the integrated of structure and function. It has become a complex of system with the development of economy, for it has very serious problem of uncertainty, uncompleted information and asymmetric information. Strong capital market structure is the fundamental assurance of capital market. The hedge of transferring of saving to investment, the low efficiency of resource allocation and the unsuitability of economy structure are the most important difficulties of our nation up to now. To push and quicken the stratified adjustment of china's economy , and to let the economy run strongly and increase steadily , this paper has proved the necessity of optimization of capital market structure in theory, and put forward some policy recommendation according to the rule of market, formation and global.