Research On Interactive Relationship Between Different Levels Of China's Capital Market

China's capital market is gradually developing accompanied by reform and opening up policy which is continuously pushing forward. It not only promotes the development of China's economy and enterprises, but also leads the financial system reform, whose impact on China's economy and society is increasing. As the world's second largest economy, China is an undeniable major economy. The capital market will play a crucial role when China transforms from major economy to economic power. A complete and mature capital market should consist of many levels, and various levels of capital market complement each other, which can meet the requirements of different market players through benign interaction. Multi-level capital market in China is gradually established. It is now an urgent task to explore how to establish interactive relationship between various levels in order to promote development of capital market better and better.The paper, firstly, introduces concept of China's capital market as theoretical basis and analyses the relationship between different levels. It, then, studies the capital market delamination experience in developed countries like U.S. and Taiwan, trying to provide practical basis, and meanwhile, probe into the reference for China's capital market delamination. The paper reviews the evolution of China's capital market, holds that it has experienced the spontaneous development stage, preliminary development stage, standard development stage and rapid development stage. The experience has showed that different levels of China's capital market lack competition mechanism and cooperation mechanism.The standpoint of the paper is to build interactive relationship between different levels of China's capital market. The paper searches separating equilibrium of screening model in information economics. Then, based on theoretical analysis, it explores how to establish the levels of capital market and form interactive relationship between different levels. It, finally, raises some policy proposals on interactive relationship between different levels of China's capital market.