Research On Opening Modes And Sequence Of China's Securities Market

With the liberalization of global finance, free capital flow has become a trend. During the process, not only markets of all countries are integrated together closely, but also the relation between global financial activities and risk-producing mechanism has become increasingly tighter. As part of the whole financial system, the securities market will inevitably tend to open up along with the liberalization of finance.The opening up of China's securities market has become an important issue in the opening up and development of China's economy in the 21^st century. Since China's financial industry began its all-round opening up to the outside world in late 2006, its securities market also accelerated its step on its way to opening up. The paper conducts studies on the opening modes of China's securities market as well as the opening sequence. First of all, the paper gives the theoretical basis of the opening up of securities market, including the theory of international capital flow, financial innovation theory and financial deepening theory. After that, the paper reviews the history of the opening up of China's securities market from three aspects, that is, securities investment, securities financing and securities industry. And then comes the significance of the opening up of China's securities market. Secondly, after comparing with the experience of some developed countries or region as well as countries or regions with newly-emerging markets, the paper sums up the four modes of the opening up of the securities market. Thirdly, on the basis of above analysis and providing the developmental reality of China's securities market, the paper studies the principles of opening up that China's securities market should follow. Then the paper generalizes the opening modes and the opening sequence that China's securities market should choose and designs a blueprint for the opening up of China's securities market. Finally, the paper comes into conclusion in which proposals of the current development of China's securities market are given. The proposals include: further regulate the operation of listed companies to make the overall quality of listed companies improved; actively and steadily expand the scale of investors in institutions to promote the institutionalization of capital source; further promote the supervision of securities market to ensure the sustainable and harmonious development of the securities market.In short, China's securities market should open up actively and steadily and solve its own problems in order to better integrate itself into the global financial market.