The Development And Problems Of Chinese Securities Market

This thesis attempts to clarify financial instrument and securities market from the perspective of contract, in order to analyze the formation and basic function of securities market by the essential hypothesis and general definition of contract economics.The thesis demonstrates that financial instrument actually is a kind of contract as the consensus of the independent-property surplus unit and deficit unit in the finance activities or formed and singed by financial agency to define, distinguish, protect or restrict the property rights, obligation and responsibilities of the party. It is acceptability accepted by the parties in the financial activities. As the congregation of various financial contracts, securities market allocates rationally property rights and chooses efficiently the dealing rules or system by the exchange of certificate of property rights. By contract signing and transfer of contract rights, securities market transfers resources from the low-efficiency investment to the high-efficiency investment, to optimize the collocation of resources. Concretely the function of securities market can be disassembled into the financing function, the assets pricing function, the allocating resources function, the diversification function of risk.Because of the special historical background and the environment of Chinese securities market, there exit a lot of institutional disfigurements. For example, there lack market participants without definite relations of property right; great inequality...