Research On The Role Of China's Capital Market In Promoting Agricultural Modernization

Under the circumstances of economic globalization, speeding up the modernization of national economy and establishing a harmonious society have become China's strategic national policy. At the same time, it can be seen from China's basic national conditions and economic development history that its agriculture is bearing too heavy a burden. The development of agriculture should be given priority in national economic development. Therefore, speeding up agricultural modernization has undoubtedly become the most urgent strategic mission. Only by advancing agricultural modernization can the agricultural productivity be greatly raised and the market competitiveness of farm produce be enhanced, thus laying a solid foundation for increasing farmers' income and eliminating the dual economic structure. However, with the development of market economy, some problems have gradually emerged in the process of agricultural modernization. Fund shortage, backward technology, low productivity, insufficient market demand and weak competitiveness are all restricting the development of agriculture. Among them, fund shortage is the main restraint. As the advanced form of market economy, capital market embodies the basic mechanism, core factors and basic values of market economy. The growth and function of capital market in a country or an industry serve as an indicator of the development of market economy in the country or the industry. After over ten years' development and improvement, China's capital market has become closely connected with its nation economy and plays a very important role in raising capital, adjusting currency circulation, optimizing resources allocation, dispersing risks and transforming corporate operation mechanism. Therefore, capital market is a new way to raise funds for agricultural modernization and will significantly promote agricultural modernization.This thesis aims to study how to make use of capital market to solve the problems emerging in agricultural modernization and how to improve capital market and enable it to play a greater role in agricultural development. It also puts forward some feasible policy suggestions. Composed of five parts, the thesis studies the issue of fund raising in agricultural modernization from the perspective of capital market. The introduction mainly includes objective, domestic and foreignresearch, problems in research, research methodology and new ideas. The second part gives a review of relevant theories, lays a theoretical foundation and provides theoretical guidance for the following research. Based on the analysis of insufficient input in agriculture, the third part points out that capital market is new way to obtain fund needed in agricultural modernization but some problems exist in capital market at the current stage of development. The fourth part gives concrete and feasible policy suggestions on agricultural modernization. The last part presents a summary of the thesis.