The Research On Institutional Design And Innovation For The Development Levels Of The Capital Market

The emergence and development of the capital market are closely linked to large-scale socialized production. It is the necessary conditions for the development of modern market economy. It is also one of the important indicators that are measured the developed level of modern market economy. The development of the capital markets promotes the formation and perfection of the market-oriented allocation of resources. As an elements market with the most market-oriented characteristics, it is a bridge or link to mobilize, deploy, and coordinate with other elements. It could achieve the goals of shared risk and benefits by its unique function of market allocation, so as to deploy and optimize social resources. Throughout the history of the sophisticated capital markets, expansion, diversification and multi-level are the three main lines of capital markets'development.Multi-level is throughout the entire history of the development of capital markets, and it is the main line of optimizing the structure of capital markets. Therefore, development levels of the capital market are an important indicator to measure whether the capital markets are sophisticated or not.As the theory foundation of the whole text, the text quotes the theory of information economics firstly. And it is put forward that there is"Adverse Selection"in single-level capital market under the condition of Asymmetric information. The text analyses the system connotation and the elements of system innovation form the theory. Then the text constructs the innovation function of investors and firms to propose the internal mechanism of the development levels of the capital market from the theoretical perspective of institutional economics.In order to provide realistic basis for the theoretical model above and reference for Chinese multi-level capital market, the third chapter makes comparison and research on America and Japanese mature capital market and analyses internal mechanism of the development levels of the capital market. The fourth chapter reviews the three stages of development levels of capital market in china and provides system defect in Chinese capital market from comparison with the development levels of mature capital market.It is focal point to study the institutional design and innovation for the development levels of the capital market in china. This article constructs cooperative game model of capital markets'multi-level structure. The fifth chapter provides the theoretical cornerstone of the development levels of capital market. Also, based on the comprehensive perspective, this article makes a thorough analysis and study on the system design of all capital markets'levels. In the end, the article proposes several suggestions to the innovation of core system in Chinese capital market.