A Study On Moral Adjustment Mechanism In Chinese Stock Market

Morality is regarded as the third adjustment force to people's economical behaviors, and its function should be emphasized at the places where market malfunctions and government policies malfunctions happen. In many occasions, market regulation system and government adjustment system can not work in Chinese stock market. So in my paper, I will highlight the function of morality in Chinese stock market and try to figure out how it works.For the sake of protection of State asset, the transaction behavior of seventy percent of stocks was limited by government regulation in our stock market, which caused innumerable problems. Analyzing this regulation by an ethical view, it was not based on equality and justice. Majority of investors became the victims of this unfair regulation. So it was not good for sustained development of stock market. Therefore, I believe the restriction force of morality to people's economic behaviors is limited when it works by itself, it will make big differences when the just regulations work with it. At the same time, the economic system and policies realize the sustained development when they establish on the ethics. Three-body-interbalance model is deduced to illuminate the ethical adjustment mechanism.The demoralization behaviors in our stock market are so common that bring huge cost. Systematically, it will break down the confidence of investors, and then destroy the stock ecosystem. Game theory analysis can prove this point of view. The statistical analysis show the terrible results caused by demoralization.At last, the paper gives some suggestions on improvement moral management and morality strength. And I hope my paper is helpful to change the actuality of our stock market.