A Research On Equities Separating In China's Security Market

In nearly five years since June of 2001, stock market has been continuously depressing all the time in people's increasingly concerns and heated discussions about the issue of equities separating which were caused by the reduction of state-owned stocks. The composite stock index of the Shanghai stock market reached its lowest of the past 8 years at 998.23 in recent years on June 6, 2005. Considering the factor of stock market volume expanding, then the actual index figure might stand between 700 and 800. China's stock index moved in quite an opposite direction compared with the movement of China's macro economy, which make the function of the stock market as a weatherglass of the economy quite useless. People just cannot help asking what is wrong with China's stock market. Of course there exist some kinds of problems with China's stock market. Although people has already reach common understanding on the enormous danger brought about by issue of equities separating ,and realized deeply it is the chaos of the expectancy which is caused by the suspense of issue of equities separating all the time that the most fundamental reason which resulted in the longest bear market since Chinese stock market's opening; and there are countless social elites who have taxed their ingenuity in order to promote the settlement of the problem as soon as possible, they also have offered thousands of train of thought of settlement and solution, but failed to be accepted by the market. Although such result is depressing, the importance and urgency of solving this problem still make it become great social subject that people pay close attention to and study continuously.