A Theoretical And Empirical Research On The Private Investment Effect Of Stock Market Liberalization

With the trends of financial globalization, many countries have relaxed their financial controls and liberalized their domestic financial markets. At present, the main financial markets in the world have already begun their course of globalization. Along with the deepening financial reform, the internationalization of Chinese stock market will be greatly accelerated, which will promote the sound development of financial system and structure, improve the accumulation and allocation of capital, and influence the economic growth. The young Chinese stock market will face large opening risk. As one of the way to economic growth, this paper studies the private investment effect of stock market liberalization with the emerging markets' datum and cases, and also discusses the solution to the problem during the liberalization.This paper firstly does carefully research on the literature about the private investment effect, and reasons how the stock market liberalization can influence the private investment. It also gets the result of private investment effect.Then we review the cases of developed countries and emerging markets, with the combine of success and failure, to find the characteristic of the liberalization process.In the third part, this paper picks 16 emerging markets as the sample, and with the research and the events, makes sure the data of the initial stock market liberalization. The experimental analysis result demonstrates that the countries experienced growth rates of private investment, even after controlling for the development of stock markets after the liberalization.At last, based on the achievement of above research, we explore the channel of realizing the goals of Chinese stock market opening, and also put forward several policy suggestions for the current Chinese stock market opening.