The Study Of Government Intervention In The Stock Market

The healthy development of the stock market not only related to the steady growth of national economy, but also provide plenty of economics' trend for the government and corporate as important reference for decision-making . However, the stock market have some inherent defects, that the laws of the market not always being worked. Government intervention will help solve these problems, to correct market failures in order to achieve the Pareto optimize the allocation of resources. We study on the crash of stock market in Unite States, HongKong, TaiWan, in order to found out the causes of crash, the Interventions been used. The use of the legal system of indirect intervention model to the American intervention, self-discipline-based intervention models to indirectly intervene in the Hong Kong-based, policy-based intervention models to directly intervene in the Taiwan stock market mainly to interfere with utility analysis in an attempt to summarize more effectively Intervention models and means of intervention for the development of China's stock market information. Then the development history of China's stock market so important to recall that China's stock market in addition to the initial development stage of the existing problems, there are two fundamental contradictions - as the multiplicity of conflicts and contradictions stock structure to be solved. Then the Chinese government on the effectiveness of intervention in the stock market analysis, revealed China's volatile stock prices, government intervention frequent intervention unreasonable effectiveness of such phenomena, pointing out that the Chinese Government on the stock market intervention in the problems. Comparative analysis of over the last four countries and regions and the effectiveness of government intervention means the pros and cons, with China's actual situation, that the Government clearly positioning, using the legal system of intervention models to replace the direct intervention indirect interventions help to improve the effectiveness of our intervention, to The healthy and stable development of the stock market.