Regional Capital Markets And The Rise Of Mid-west Area

Since the beginning of reform and opening up, China's capital market has developed rapidly and scored remarkable achievements. With capital market is beginning to take shape, the market infrastructure has been constantly improved, the gradual improvement of laws and regulations, standardized of the market, China's capital market has become an important part of the socialist market economic system. Capital market has made an important contribution to reform of state-owned enterprises and financial market, and optimize the allocation of resources, promote economic restructuring and economic development.China, as one of the fastest growing economy in the world in recent years, how to improve their own effective capital market system is obvious to have a very significant meaning.Entering the 21st century, the first major challenge China's economy faced is that while the eastern part has basically realized modernization, the development of the vast Mid-west region is caught in the predicament. It can be said that such significant features and imbalance in economic development of various region in our country is very rare between the developing countries in world.In the vast Mid-west regions, there is very little central government's financial support, and the national capital market has limited capacity, meanwhile, the enterprises of Mid-west regions have no advantage over the eastern region, so technological innovations in this areas can not find a strong point and has a serious impact on the development of the Mid-west regions.Under such a situation, in the full experience of the regional capital markets of developed countries, it is particularly urgent and important to construct regional capital market to meet the needs of regional econmy in our country. According to the viewpoint of regional economics, the choice of market location has huge impact on transaction costs. So, it's necessary to construct regional capital market to reduce transaction costs. This paper written under this surrounding, the text is divided into five parts.The first part is introduction. This part briefly explained the background of the study, the current situation of this study at home and abroad, and the ideas and methods of the study.