Empirical Analysis Of China's Stock Market Development And Economic Growth

Since 2001, there has been a nation-wide discussion in regards to what is the mainstream of China's stock market and how to properly evaluate its status and effect in the national economy. This thesis analyzes the relation of China's stock market and economic growth from three parts.This thesis is mainly made up three parts. The first part generalizes the literature, narrates the characters of stock market functions on liquidity supply, risk diversification, price signals deposit mobilization, analyzes the relation of China's stock market and economic growth.The second part is the core of our thesis. The empirical analysis on the relation between China's stock market development and economic growth is made through the economics. From the index of economic growth and stock market development, we analyze the relations of stock market development and GDP growth rate, deposit rate, fixed assert investment growth rate. So we make a conclusion the volume of stock market is weakly linked with economic growth, but is an important link in deposit rate, fixed assert investment growth rate.The third part analyzes the government risk and information of price in stock market, these is an obstacle in stock market effect on economic growth.