The Research Of Stocks Market Game Concerned Tax Policy In China

With the development of China's economy, taxation is no longer a single method for government to increase its fiscal income, but a guidance for market players rather than regulations. The function of taxation is no longer compulsory government regulations, but direction of market participants. The effectiveness of tax policy towards security market lines with whether it can influence the interests and action of market participants, therefore facilitate the control of security market development. However, during the process, government does not purely function as policy maker and implementer, other participants are not purely policy observers.The financial industry is naturally more sensitive to tax than other industry, i.e. commercial industry, labor market. Security market, as one of the key components of financial market, were invested by participants with free cash floats, especially in second market. Investors aim to have more investment gain while taking great risks. Tax functions as leverage of risk and income to those investors. Through taxation on the process of stock issuance, stock trading, stock transferring can adjust the cash flow to the market and its investment structure, can regularize market participants and market maker's actions. These will influence the effectiveness of security market and lead the security market and the financial market to develop in a stable and healthy way.The article starts from analysis of the interests and conflicts of market participants, and analyzes taxation on security market and their effectiveness. The article used , started from game theory, and stated the influence of tax policies on participants in security market, and analyzed current status of security market tax policies and their problems. Proper tax policies and tax rate is important to a mature and healthy security market. Besides, the article set up mathematical model for security market participants and analyzed how they could maximize their investment income under current tax policies. The article also mentioned how to improve the tax policy of our security market at current stage and the government should bring out tax policies that is for the long-term sustainable development of the market and for the long-term social benefits.