The Study On The Proplems About Setting Up A Regional Capital Market In Western Region Of China

Although it is widely acknowledged that the importance of capital market in economic growth, the capital market of our country is still developed disproportionately, and there is a gigantic gap exists between western region and eastern region. Furthermore, because of it, the gap which is in economy and culture between these two regions has been enlarged. And worse, it severely disturbed sustainable development in market economy of our country and the construction of harmonious society of socialism. In 1999, our country has started the project of Development of the Western Regions. Indeed, from native perspective, this regional development is a typical exploration of undeveloped region of our country. From another perspective—the course of economic development at abroad , we may found the fact, that is, without the effectiveness of capital market, it could be impossible in successfully explored the undeveloped region. Therefore, we should pay much attention to the capital market on a strategic height. Moreover, we should play it on the leading role in regional exploration. However, the development of western region is a gigantic project. There are, hence, a large scale of funds should be invested in this project. Since lack of funds for a long time, there are a large amount of enterprises in difficulty in centre and western regions, and not to mention to optimizing the pattern of ownership and industrial system. Obviously, only through developing the capital market these difficulties should be overcame ultimately.From the above mentioned, some tentative ideas on setting up a capital market of western region in China are drew from this passage, which on the basis of the contrast between useful experience at abroad and current research results and combined with the practical situation of western region as well. Meanwhile, on the basis of significance of capital market to economic growth, I revealed, first of all, several reasons like the economy in western region which is lag behind other regions and the momentum of development is still insufficient. Thus, it is necessary that to establishing the capital market of western region. Secondly, through analyzing the advantage and disadvantage of western region, I pointed out the feasibility of building regional capital market in this area. Finally, after using the advanced experience of developed region for reference and analyzing the feasibility and necessity of establishing the capital market of western region, I brought forward a few countermeasures and provide some necessary ideas for the construction of capital market in western region.