Study On Credit Deficiency In Chinese Stock Market

Credit is the soul of market economy and the basis of a society. But in China today, credit deficiency is a very common problem, and it is more serious in Chinese stock market. Since July, 2001, stock exchange index has been slumped for seven months, ranging 40%, resulting to a loss of more than thousands of billion Chinese Yuan. Up to now, there is no sign to so from the low point, This is mostly caused by a long period credit deficiency. Studying the credit deficiency earnestly and finding the effective way have actual importance to rebuild the credit system in stock market to recover the investors' confidence and to develop our stock market normally, healthy, and orderly.On the basis of Marxist political economy and modern economics, this paper analyses the credit deficiency phenomenon in our stock market and puts forward some suggestions. During the analysis, credit theory and new institutional economics are absorbed and used for reference. The methods of combining history with reality, theory with logic, and comparison with analysis arc adopted.This paper is divided into four parts. The first part is of basic theory of credit which focuses on the definition of credit, credit economics, and the meaning of studying credit deficiency. The second part is about the phenomenon of credit deficiency in our stock market. It especially describes the credit problems on the enlisted company, security agency, government and investor. The third part specifically analyses the credit phenomenon described in the second part. Regarding the credit on the enlisted company this part analyses it with the western property right institution from two parts; property right institution and corporate governance structure It points out that institution defect is the root of credit deficiency Regarding the credit on the security agency, this part analyses it from four pans: independency, penalty system, function apposition and guild self-control. Regarding the credit on the government supervision, this part analyses it from supervision concept and market mechanism, and points out its so(?)ce. Regarding the credit on the investor, this part points out that the main reason is the credit concept indifference. On the fourth part, suggestions on credit deficiency in our stock market are put forward, First the property right pluralism reform should be carried out Some reform ways are listed and analyzed, the shareholding division concerning the property right pluralism reform and the pricing scheme of state-owned share are supposed. On the basis of it, perfecting the corporate governance structure, reinforcing the stock market supervision, standardizing the conduct of security agency and constructing the credit system in stock market arc discussed.The novelty of this paper lies in the followings: credit theory and property right theory are applied into stock market, and specific suggestions are put forward to develop our stock market.