The Study And Analysis On The Risks Of The Securities Market Of China After The Non-tradable Share Reform

Due to the historical reasons, there has always being a non-tradable shares problem in the securities market of China, which affected the development of the securities market seriously. To solve this issue, in the 29th of April, 2005, the experimental unit of non-tradable share reform of China was started officially. By the end of 2007, the non-tradable share reform had entered a stage of completion. Over the past two years, with the continuous progress of this reform, the stock market has been a bull market for more than one year, which made domestic and foreign investors got benefits, and activated the confidence of investors. A new capital market would be vividly portrayed.However, the non-tradable share reform is not omnipotent. With the arrival of the full circulation times, there are a lot of problems and contradictions restraining the development of the securities market of China. Basing on the actual development of the securities market of China, this paper emphasizes the analysis of the new changes and challenges that the securities market of China will confront after the non-tradable share reform, and makes a series of recommendations to the long-term development of the securities market of China.There are four chapters in this paper. In the first chapter, the author introduces the background and the significance of the selected project and the research methods. The innovative points of the paper are also included in this chapter. In the second chapter, the article is proceed with the definition of the financial risk. The author makes a compare and particular definition of the financial bubble, the financial risk and the financial crisis, which is theoretically meaningful for the following research in this paper. In the third chapter, the author analyses the new situation and new changes of the securities market of China after the non-tradable share reform. In the last part of this article, the author makes a series of strategies of creating a safe and long-term securities market. In this section, the author makes a number of new and practical points on the ways to prevent the risks of the securities market of China.