The Study Of The Development Of China's Capital Market In Relation To Its Economic Growth

There is a focus on Make an intensive study of the capital market have an effect upon economic growth with concrete practice. It is generally believed that main mechanism the capital market have an effect upon economic growth that include the support Liquidity, diffusion of risk, reduce information asymmetry. It stimulate of saving deposits have a trend to investment and to gain control of enterprises. At the same time, the capital market can influence saving deposits reform to investment, become a sound, multi-level of investment mechanism. By means of which the distribution of resources and promote technology innovation can influence capital's marginal productivity and can effect the willing of private's saving. Can Promote the realization of economic growth by change tendency of consumption influence private's saving rate and etc. Because the capital market's main tasks for development is singleness. There is some congenital mechanism fault of arrangement in relevant system. Such as administrative distinctive feature, market lack of microscopic efficiency, bond market's controlling shares undergo breaking, etc. Give rise to market's developing and perfect depends on original object too much. Still and all, this paper deals with that the developing of our country's capital market at least can promote economic growth as follows:1. Bond market direct investment provided a heavy capital for the enterprise2. Delimitation of property, reform of these systems in the charge of line and the threshold of reform of these systems make something of external utility but that were subjected to the line condition's reform of these systems make it can be come true, avoid shaking during the reform of these systems.3. Optimizing the resource, promoting expansion of enterprise scale and promoting optimization industrial structure.4. Promoting optimization financial structure, process of financial deepening5. The capital market can effect the social investment and consumption demand, promoting total quantity of saving rapid growth6. Influence the provision of a nation's currency's structure and quantity, Influence macroscopic transmission mechanism of monetary policy, so as to indirect Influence economic growth.At last this paper take 1994—2002s each quarter quantitative data for instance, make a regression analysis of economic growth and capital market's developing, and in which main targets is tested out Crand causality, It reads as follows:Economic growth that is had a notable impact on Stock Index. At the same time, since our country index of stocks as a direct effect market investment condition and by wealth effect as a tendency of household consumption. Therefore Stock Index had a certain impact on economic growth, but the significance of effect is not strong as economic growth effect Stock Index. Each other can effect lagged each quarter.The relation between chain index of economic growth and the ratio of capitalizing, trade financial deepening, saving is linear. There is economic growth can realize the effect on the ratio of capitalizing by the new trade. The ratio of trade is Crand causality, Give reasons of the capital market vigorous degree had a notable impact on economic growth but it lagged a year, it mainly because capital market vigorous effect economic growth can be come true by a series of transmission mechanism. Economic growth have not significance effect on market vigorous ,maybe it is relation on our country"Policy market"characteristic feature.