Analysis On The Government Behavior In The Development Of Chinese Stock Market

The Chinese stock market was established by the government with the establishment of the socialist market economic system. The development and transition in the system of Chinese stock market mostly have performed in the respect of the changes on the government behavior in the development of Chinese stock market. Compared with the development of the stock market in other countries, the government behavior has affected the operation and development of the stock market more significantly in China. The Chinese stock market is still an emerging stock market. The nearing completion of the split share structure reform shows that the Chinese stock market has entered a new period of development. But the system of the stock market is still not perfect. There are some deep problems that need to be dealt with and the government behavior in the operation of the stock market is far from normal and maturity. All of these have affected the reform and development to go deep into the Chinese stock market directly. Based on the analysis of the evolution and efficiency about the government behavior in the development of Chinese stock market, this paper will research the objective and manners of the government behavior, which is related to the development of the stock market. And then bring up some proposals to promote the healthy development of Chinese stock market.Stock market has been known as the "barometer" of the economy. Any small changes in economic policies would impact the stock market. The market economy is established and developed by the government in China. Empirical observations and theoretical research indicate that there are more relations between the government and the stability and development of the stock market. So research on the government behavior in the development of Chinese stock market would have some practical significance for standardizing the government behavior, improving the behavior efficiency and the healthy development of the stock market system.There are very close relations between the development of a market or an industry and the relevant legal environment. China is still in a period of time that is gradually perfecting the socialist market economy. The building of the legal system especially which is relevant with the market economy is still very weak. The building of the legal system in the stock market is more obvious. The relevant legal system of the stock market is a very important part of the government behavior in the development of the stock market. It is the most outstanding performance of the government behavior. So when we research on the government behavior in the development of the stock market, it is also very important and necessary to research on the relevant legal system.How to regulate the stock market is a very important theoretical and practical issue. There are many theoretical controversies about it. They are not to affirm or deny the government behavior in the quality, but to make sure how to make the government behavior in the stock market a reasonable position in the quantity. The regulate development of the stock market first depends on the regulation of the government behavior. Only as the government behavior is regular that will be able to develop a standardized, order and efficient operational stock market. The standardization of the government behavior is the primary step of the healthy development of Chinese stock market. So it is very necessary to analyze the government behavior in the development of Chinese stock market comprehensively and carefully and regulate the government behavior timely and effectively. Make the government behavior in the development of the stock market to play a promoting role.This is not only a hot but also is a hard issue. But at present, there are very few scholars who have had a systematic research about it. This paper will analyze the government behavior in the development of the stock market comprehensively. Hope that it could contribute to regulate the government behavior in the stock market and to improve the healthy development of Chinese stock market.There are three chapters in the paper. ChapterⅠ, have a summary of the general theories about the government behavior of the stock market. This chapter includes three parts. PartⅠ, the basic theories researched on the government behavior which include new political economics, new welfare economics and the law and finance theory. PartⅡ, sum up the research about the government behavior of the securities market. It is mainly about the ineffective government regulation theory and effective capital market theory. PartⅢ,note the research on the government behavior in our country.ChapterⅡ, first note the definition of the government behavior of the stock market, and then analyze the government behavior in the development of Chinese stock market comprehensively. Illustrate mainly from five aspects. PartⅠ,analyze the transition on the objective of the government behavior in the development of Chinese stock market. First, analyze the objective of the government establishing the stock market. Then construct a model to describe the government behavior. At last make an empirical analysis on the objective of the government behavior in the development of Chinese stock market. PartⅡ,analyze the changes about the stock issuing system. The issuing system of Chinese stock market is evolving. It changed from the audit system, approval system, to the sponsor system. It can be seen the optimizing and exploration process of the government behavior in the stock market in the stock issuing system. PartⅢ,analyze the reform of the stock Circulation system. Firstly, note the history of the split share structure. Secondly, delicate the hazards of the split share structure. Finally, analyze the split share structure reform comprehensively. PartⅣ,analyze the construction of the investor protection system. According to the real development process of Chinese stock market, introduce the building process of the investor protection system from scratch. Emphasize on the content of the investor protection system in the new "Securities Act". PartⅤ,note the development of the opening up system. Analyze from the setting up of the B-share market in the early days to the one-way open QFII system, then to the two-way open QDII system. So that to note the development of the opening up system.ChapterⅢ, with the method of unusual fluctuation point and the method of"event study", analyze the effect of the government behavior in the development of Chinese stock market. Think that there is politic effect in Chinese stock market. While with the development of the stock market and the investors know more rules of the stock market, the politic effect in Chinese stock market appears a gradual weakening trend. That is a kind of more and more mature performance of Chinese stock market. Then research on the cause of the effect.At last, it is the conclusion of the paper. Based on the above analysis, point out that the government should aim to set up a stock market which is driven by the market mechanism. The government also should rectify the stock market function distortion, deepen the split share structure reform, improve the regulation and perfect the legal system of the stock market.