The Effect And Empirical Study Of Security Market On China's Economic Growth

Security market is one of the essential elements of the market economy system. Security market plays an increasing important role in China which is shifting from the Collective Planning Economy to the Market Economy System. It is not only the market takes place of the plan to allocate resource but also pushes a new basic constitution which stands for the standard of productive to be formed and to disentangle completely people's idea.After many year's fast development, China's security market has made a great progress. Practice shows that the development of security market has played an important role in enterprises'financing and reforming. However, as our stock market still in initial stage, shortages still remain in stock issuing, capital structure and the practice system of the stock market. Even the impact of a developed and mature stock market to a country's economic growth still remains to be discussed. The reason this paper selected"the relation of the security market and economy development"as its researching subject is to judge the level that security market promotes the economy development. Through the research,the result would lay a foundation for the strategic decision of the security market and economy development.Chinese security market is now facing a brand new progressive situation recently. While to analyze the relationship between the progresses of the economy and the stock market,and to emphasis the importance of the stock market to our economy is the precondition to objectively understand the station of the stock market in our economy so as to improve it farther. After analyzing the actuality of our economy and the stock market,this article first discusses the relationship between the stock market and the progress of the economy, then establishes the mathematical model to test the relationship between the stock market and the progress of the economy with some economic data. By referring to the current event in Chinese stock market and the reform trend all over the word, it gives some countermeasures and suggestions to perfect our stock market.