The Influence Of The Reform Of Non-tradable Shares On The Functions Of Stock Market

The success of the reform of non-tradable shares won the full circulation of stocks in China. This change will make effect on financing, pricing, and resource allocation functions of the stock market. Based on summarizing and reviewing related literatures in and abroad, the influence of the reform of non-tradable shares on the functions of stock market is analyzed, and the suggestions on fully playing the stock market functions after the reform of non-tradable shares are put forward. At first, this paper analyses the effects of the reform of non-tradable shares on the financing function of stock market from the improving of the financing function of stock market and the listed companies'abuse of financing function of stock market and then comes to a conclude that the reform of non-tradable shares obviously helps improve the financial patterns and the multiplication of the financing main body of stock market, and also inhibits the listed companies' abuse of financing function of stock market. Then this paper analyses the influence of the first and second level stock market's pricing function after the reform of non-tradable shares and points out that the full circulation makes arbitrage between the first-level market and second-level market which realizes reasonable pricing. Meanwhile, the negative influence on pricing is also mentioned. Moreover, two types of stock market's resource allocation function are proposed. Because the first type is related to the financing and pricing functions, this paper analyses the positive and negative affections of the reform of non-tradable shares to the resource allocation function from resource relocation which is the second type of stock market's resource allocation function. Finally, put forward suggestions on the development of the stock market according to the functions of the stock market after the reform of non-tradable shares, hoping to make the functions of stock market more profound.