The Forming And Developing Of Modern Chinese Stock Market

Finance is the core of economy , stock market is an important part of the finance and capital market. From modern China carried out stock system and issued the first stock—Steamboat Bureau Stock in the 70th of 19 Century, where the share securities market exist more than 60 years in marketplace untill Anti-Japanese War breaked out in 1937 and the Republic Government withdrawed from Shanghai. In the process of modern stock market developing, each stages and period had carried out appropriate adjustment to the stock market which based on the situation of a country and then's condition, had accumulated large amount of theory and practical experience , also had accumulated a lesson from the mistakes for a short time. Both successful and failure experience are precious wealth to our new stock market in nowadays and be worthy for us to study carefully. The paper tries to find some rule and characteristic in the modern stock market and providing history lessons for much better developing of today's stock market., by researching the theory and practice of modern stock market.The mainly body of the paper.Part I has carried out a boundary stable and corresponding instruction for stock and security's concept, then, divided the prewar stock market into three stages and carried out detailed expound. The paper has taken the significant stock event as separation. In 1872 the first stock appeared for beginning, till 1883 the first stock agitation broken out is the first stages; The second stages from 1883's stock agitation to 1921's "people ten Entrust and Exchange"; The third stages ended Anti-Japanese War all-round broken out and stock market suspended doing business in 1937.Part II has discussed the issue situation and characteristics of stock market in the modern China. Stock's issuing is the basis of the entire stock market, belonging to an investor and a raisor. At the modern times, Chinese stock issuing originated from Steamboat Bureau Stock in 1872. The stock market is not developed state enough because of Chinese internal and external troubles and mismaturity of industry developing. Nevertheless, stock issue marketplace's building-up had brought the active function for enterprise raising funds at a certain extent and broadened enterprise's financing channel.Part III has discussed the stock's appearing in the market and their inspection of modern China. Stock coming into the market and exchanging lies are for circulating. By circulating , the stock reflects the marketplace capitalization and particular estate right business relation , then the investor's investment desire comes ture. The stock exchange was one of the most active part of modern stock market, in simultaneous, was also comparatively strict field managed by the government. Also the exchange in practice was varied, the business way is to be confined to spot-to-spot exchange mainly.Part IV has discussed the framework of Chinese Stock Exchange and their operation of the modern times. Modern China copies Japan, several Stock Exchange successively setting up all gather row of share company organization forms, this was different from major Europe countries at that times. Stock Exchange is that the bond concentrates trading place, in order to ensure business safety, Stock Exchange payed the caution money in the bank when first time of setting up. Stock Exchange shoulders be duty of compensation for damages if the risk happened in the process of Stock Exchange business, but can be repayed from the breakor.Part V has discussed the broker and broker sociaty organization of stock market in modern China. Stock market have many beneficial body, among them, the most important was the broker. Every stock exchange had a quota of broker to restrict, the people who got qualification would be examined strictly by Stock Exchange and government authorities. Consortia of broker was a self-regulation organization inside of the industry that builded by broker, which be beneficial to fair deal environment and protecting investor's benefit.Making a comprehensive view of modern China's stock market, it can be seen, the stock market of modern China is an outcome of peculiar history, be fail to attain perfection though developing several tens years. Both the modern and nowaday's stock market are in the initial stage, they have some similarity. Studing the forming and developing of modern Chinese stock market, will providing good history lessons for much better developing of today's stock market.