Discussion On More Perfect Multi-tier Securities Market Of China

With over a decade of development, China's securities market has been improved significantly with an increased scale and playing an important role in the national economy. However, many problems arose along with the development of this market, where mainly include: the first, irrational equity ownership structure of listed companies, and separated disposal of equity; the second, serious problems with the Corporate Governance of listed companies; the third, difficulties in financing and development for small and medium companies and hi-tech enterprises; the fourth, immature market exiting system; the fifth, unreasonable issuing prices.All these problems have imposed negative effects on the constant and healthy development of the securities market. This article suggests that more perfect multi-tier securities market is likely to solve the above problems effectively.Considering the practical situations, the basic conditions for establishing multi-tier securities market in China have well formed at present, therefore, it is the right time to put forward such idea and realize it. In the light of foreign experience and the natures of China's securities market, we should build up a multi-tier securities market system, include the stock exchange, the growth enterprise markets, the over-the-counter market and the property right exchange center.This article will be divided into four main sections. The first section will mainly present: the general structure of a securities market; the development status and the classification of the tiers of China's securities market; the general functions of a securities market and the weakness of the functions of China's securities market. The second section will sum up the main problems existing in China's securities market and the causes of these problems, and then analyse the relationship between the establishment of the multi-tier securities market and the settlement of the radical problems influencing the development of China's securities market, and accordingly draw a conclusion of the necessity of establishing the multi-tier securities market. The third section will compare the structures and functions of the securities markets among some market economy countries of which their capital markets have been existing for a long history and been well developed, and learn some lessons from them so as to think about how to build up the multi-tier securities market in China. The fourth section will argue the status quo of China's securities market first, and then design the securities market tiers satisfying the requirements of the future development of capital market, and bring forward the supporting measures on the improvement of securities market.