Security Market System Change And Market Volatility

Introducing the securities market into a planned economy, which is a institutional innovation itself, could make the function of changing primary resource distribution system and improving it. As born, China stock market took the obligation of serving for the Chinese economic transformation. In the past 20 years, the basic policy appointed by government for the securities market actually was meeting requirements of macroeconomic policy and reform and opening, rather than based on a thought of optimizing resource allocation. As a result, the government made itself to be either the participant or the keeper. This dual identity gave the government a opportunity to infect the stock market with policy alteration. So China stock market system is a mixture of modern institute and Chinese characteristic. The whole thesis is divided into six parts to research on the institutional evolution of Chinese securities market and its volatility.Chapter One is preface which expounds the research background, the significance of the study, present literature, research object and research method, as well as showing that securities market system and policy changing induce market volatility.Chapter Two mainly lists out traditional and modern theory about the development of securities market system, and reviews changing theory of securities market system it latest trend.Chapter Three, named"Chinese characteristics of securities market system construction", mainly describes basic elements and features of securities market system construction and reveal its Chinese characteristics from political and economic system, market system base, major contradiction existing in market development and system construction.Chapter Four,"the major elements inducing securities market volatility", describes the marketable system elements, systematic and mechanism elements, environmental elements, then explain the influence of these basic factors to the market volatility and their effects on systematic evolution of securities market.Chapter Five,"system essential change and market volatility", mainly analyses causes that induce market volatility, including (1) system of issuing market and exchange market, (2) structure of investors in securities market, (3) the architecture and system of securities market regulation, (4)the relation between the market and government. Furthermore, this chapter analyzes the market volatility and the destructiveness to the market stability caused by the institutional evolution above, and reveals the harmfulness of government implicit guarantees.The last chapter, based on analyses above, discusses the system choice path of securities market, proves that securities market not only makes it system foundation base on public economic subject, but also makes its system structure adapt to the dual mechanisms during shunt time. It is important to straighten out the relation between the government and the supply of market system, clarify the limit how government intervene the market system, reasonably define the direction and power how government's supply new system, perfect supervision mechanism, so that we could realize the target of promoting the system construction of securities market gradually.With the analyses above, we could come to a conclusion that China securities market should adapt the institutional structure with the dual system in the shunting period, distinguishing the relationship between the government and the market supply and nailing down how government could intervene the market system, so as to advance the institutional construction of the securities market. Howsoever, it is profitable for China securities market to research on the relation between the institution and the market volatility and find out when and how government should intervene the market.