Analysis On The Reasons And Countermeasures Of The Lag In Gansu Capital Market's Development

Capital Market is an important element of the market economy and it has an important impact on economic growth through some mechanisms. Chinese Capital Market has achieved considerable development, and played a certain role in promoting economic growth from the 1980s until now, Gansu Capital Market, compared with the National Capital Market, demonstrates strong lag. The main purpose of the article is to explore the trails for Gansu Capital market development by analyzing the reasons that Gansu capital market lagged behind.Based on the recognition of the importance of the capital market on economic growth, firstly, the article makes an empirical analysis on the development of Gansu capital markets, and it turns out to be that Gansu capital market demonstrates strong lag on size, structure, development speed and performance of listed companies. Secondly, through qualitative and quantitative analyses of the impact of lag, we draw the conclusion that the reason that the development of Gansu capital market lagged leads to deficiencies of the basic functions of the capital market and the capital market played the slightest role on economic growth. Thirdly, through exploring the reason, we find that Gansu capital market is not only affected by the depression of the national capital market, but the systems, level of economic development, Industry life cycle and the corporate governance also contributes a lot to this. Finally, according to the main reason, this article gives some specific suggestions on how to cope with the lag to advance the development of Gansu capital markets, including developing entity economy, fostering and standardizing the subjects of capital market, innovating market system and so on.