The SCP Analysis Of China's Stock Market

By taking the stock market as a special market, this paper uses the framework of SCP to analyze the present structure - conduct - performance of China s stock market: The peculiar share structure that 2/3 state-owned share and corporative share can not be transacted in stock exchange, result in series of unfair conduct such as intense intention of refinance, the low efficiency of recruitment capital, prevalence of related transaction and offering guarantee to related part, which lead to the performance that assets scale is negatively correlated with profit-ratio of assets and the total earning of investors is negative.This paper analyzes the effect of 4 the state-owned commercial bank s IPO upon Chinas' stock market: sectors distribution will be more reasonable, market capitalization concentration-ratio and fluidity will be further enhanced, P/E ratio will be decreased, SSE Index will be raised by more than 976 points, the lever effect of top 4 shares will be expanded by 75% .In the end, several policy suggestions that intends to standarlize the conduct and strengthen the management are put forward. The conclusion that state-owned commercial bank s IPO will benefit the development of China s stock market can be drawn .