China's Money Market And Capital Market Coordination Of Development Problems

The finance is the core of the modern economy, and the financial market supplies the environment for the development of the finance. As the important parts of the financial market, the harmonious development of Money Market and Capital Market is the key for the success of the financial innovation, and even influence the whole economy of China. Thus the harmonious development of Money Market and Capital Market has become the focus in the economy .Under such background, the author intend to study this issue.The harmonious development of Money Market and Capital Market includes two levels of meaning: the first one is both of the two markets need develop very well, the second one is connection and interaction are necessary between the two markets. Due to the history and so on ,it was caused that Money Market in China was lagging , that Capital Market in China was irregular and that it was unconnected efficiently between the two markets. There are some main problems as follows. There is no real basic rate, the liquidity in Money Market is surplus, Capital Market is with unreasonable financial structure and simple level, stock rights is divided and bond market is lagging and apart etc.. And the financial market is the whole , so it is supplementing each other and not cut apart between Money Market and Capital Market. One market's faultiness will influence the other market directly, lead to unharmonious between the two markets, and even hinder the development of the national economy healthily. Thus we must take feasible measures to promote the harmonious development of Money Market and Capital Market in China.According to the main factors that restricted the harmonious development of Money Market and Capital Market, the author pointed that first of all, we should set the basic rate subject to the reality in China, push on market-oriented reform of interest rates, and develop the instruments of Money Market so that we can develop...